Government challenging GPOs as money savers

This is a tough time for group purchasing organizations (GPOs). The government is challenging their claim that they save hospitals money. A recent series of articles in the New York Times alleges that some GPOs have engaged in questionable business practices. Other critics claim that the business model that GPOs operate under is just plain wrongheaded. Despite the bad publicity, GPOs are holding steadfast to their position that they represent an asset to hospitals. For most health-system pharmacy managers, GPOs are an integral part of doing business. However, some believe that the recent intense scrutiny that GPOs are undergoing could change the nature of how they operate in the future.


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