An important report has been released by the Government Accountability Office (GAO) pertaining to GPOs. It reaffirms what many of us have been saying for years now – that GPOs help unite a fragmented healthcare system.
The GAO report details some of the comprehensive steps taken by GPOs to ensure fair contracting, transparency and discount product pricing. But equally important is that the report points out the significant progress that has been made to continually examine and strengthen codes of conduct, ensure competitive access and improve relations with suppliers.
The full report and highlights of the report are available on the GAO website. They explain that GPO practices are fair and transparent and that hospitals see great savings.
Some of the key GAO findings include:
1. Ninety percent of hospitals voluntarily contract with GPOs.
2. All GPOs have in place programs to evaluate innovative technologies that could provide a meaningful benefit to patients, and can take steps to rapidly introduce these technologies in the marketplace.
3. GPOs distinguish themselves in a competitive market with additional services that improve quality, safety and cost-effectiveness, including e-commerce and benchmarking, clinical resource guides and pharmacy management services.
4. GPOs provide many of these services at no cost through collection of nominal administrative fees.
5. In consultation with Congress, GPOs created HGPII (the Healthcare Group Purchasing Industry Initiative), which has led to increased transparency and more multi-source contracts.
6. Codes of conduct have had an impact on GPO contracting practices, product selection, administrative fees, conflict of interest policies and transparency.
7. Three of five suppliers interviewed said fees are more consistent and predictable as a result of transparency initiatives voluntarily undertaken by GPOs.
GPOs are a major asset to healthcare. They are helping lead the way with important aspects of healthcare reform. They improve the way care is delivered, setting standards in safety and quality. The work they do helps make non-profit hospitals and healthcare systems stronger. In the end this is a win for patients and the healthcare system in this country.
Kester Freeman blogs regularly at Action for Better Healthcare.