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Is Group Purchasing Broke?

Executive Summary

Facing unprecedented scrutiny from major media and the US Senate, leading GPOs are beginning to revamp their policies to address concerns on the part of small suppliers that the current system unfairly excludes them. But given the animosity between the two sides, will there ever be a meeting of the minds on GPO reform?

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The Senate hearings held last year on hospital group purchasing highlighted one of the most difficult challenges hospital groups face: getting physician-preferred products like drug-eluting stents and orthopedic implants under contract. For the past ten years, Novation has had a program focused specifically on such high tech devices, and though it hasn't always been easy, the program has been remarkably successful in getting manufacturers to put products on contract.

Novation's Play in Physician-Preferred Products

The Senate hearings held last year on hospital group purchasing highlighted one of the most difficult challenges hospital groups face: getting physician-preferred products like drug-eluting stents and orthopedic implants under contract. For the past ten years, Novation has had a program focused specifically on such high tech devices, and though it hasn't always been easy, the program has been remarkably successful in getting manufacturers to put products on contract.

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