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Diane Publishing Books
Group Purchasing Organizations: Funding Structure Has Potential Implications for Medicare Costs
Linda T. Kohn (au)
Health care providers often use purchasing intermediaries known as group purchasing organizations (GPOs) to negotiate contracts for products and services with vendors such as manufacturers, distributors, and other suppliers. Providers can then purchase products and services from the vendors for the prices negotiated by the GPOs. GPOs contract with vendors and receive a fee from them when providers purchase from the vendor. These fees are a source of operating revenue for GPOs, and they are allowed to collect them if they meet the requirements of a safe harbor to the šůžanti-kickbackšůĚ provision of the Social Security Act -- known as the Anti-Kickback statute -- which would otherwise prohibit such fees. This report examines (1) GPO contracting practices and the reported effects of these practices; and (2) how GPOs are funded and the reported effects of this funding structure. Figures. This is a print on demand report.
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