Wednesday, September 4, 2013

Group blames GPOs for generic drug shortages By Jaimy Lee


A small group of healthcare providers took to the op-ed pages of the New York Times to press their case that the business practices of group purchasing organizations are causing drug shortages.
The group, which is called Physicians Against Drug Shortages, is made up of about seven physicians, a pharmacist and a long-time critic of the GPO industry who say their aim is to restore the supply of generic drugs that have had shortages. The group is seeking the repeal of the so-called safe harbor, a provision that exempts GPOs from violating the anti-kickback statute when they retain administrative fees from medical suppliers for negotiating contracts on behalf of their hospital members.
“The Obama administration and Congress must protect patients by repealing the anti-kickback safe harbor and restoring free-market competition to the hospital purchasing industry,” the physicians wrote in the Sept. 2 op-ed. In January the group made that case in letters to members of Congress and the Obama administration.
GPOs dismiss the campaign as a hit job on the industry. Curtis Rooney, president of the Healthcare Supply Chain Association, a trade group for the largest GPOs in the industry, said that “any attempt to link GPOs to drug shortages is an irresponsible and dangerous distraction. The true cause of drug shortages is manufacturing problems, quality issues and barriers to getting new suppliers online when supply is disrupted.”


Read more: Group blames GPOs for generic drug shortages | Vital Signs | The healthcare business blog from Modern Healthcare http://www.modernhealthcare.com/article/20130904/BLOG/309049998#ixzz2dykKGnlj
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