Group Purchasing Organizations and Market Reform: What's Ahead for Device Companies?
BY EDITOR, SEPTEMBER 5, 2006
February 2010 update: This report is no longer available for purchase. Learn more here.
Fact: GPO-negotiated contacts drive more than $100 billion in device purchases by hospitals.
News Item: The DOJ, the Connecticut Attorney General, three U.S. Senators, and the New York Times call for GPO reform.
Takeaway: GPO market reform will change your business.
The cozy world of privately-held GPOs has its roots in a worthy purpose: pool hospital purchasing power to save money. With concern over healthcare spending, those goals are still relevant today.
Yet two decades of regulatory boundaries haven't kept GPOs on the straight and narrow. Firms like Novation and Premier have acted opportunistically to grow at remarkable rates.
These events, plus a series of high-profile court cases and the introduction of new bills on Capitol Hill, helped prompt our Research team to write its latest report: Group Purchasing Organizations and Market Reform.
Although you can learn more about the report by scanning the Table of Contents (below) and reading a free sample chapter on GPO market dynamics, here's a summary of what you'll find in the report:
- How the GPO market works.
- Insight into the two sides of the debate.
- Possible outcomes of market reform.
This report is particularly useful for orthopedic device firms, since regulatory game-changing is bound to impact sales and distribution strategies.
"Group Purchasing Organizations and Market Reform" is available for $379 here.
Table of Contents
Introduction: GPOs under the Magnifying Glass
What is a GPO?
The GPO Footprint in the Market
The Controversy Surrounding GPOs
About This Report
Background
The Birth and Growth of GPOs
GPOs Today
GPO Market Segmentation and Physician Preference
GPO Market Dynamics and the Flow of Funds
Breakdown of the Current Issues
Arguments for the Status Quo
Arguments for GPO Reform
The Players in the Debate
Two Lawsuits Regarding GPO Practices
Department of Justice and Connecticut Attorney General Investigations
Industry Self-Governance Initiatives
The Senate Antitrust Subcommittee Hearings
The Three Congressional GPO Bills
Responses to Proposed Legislation
The Impact of Possible GPO Debate Outcomes
Potential Impact on Vendors
Benefits of the Status Quo
Benefits of Not Using a GPO
Benefits of Reformed GPOs
Discussion Points for Vendors
Potential Impact on Hospitals
Benefits of the Status Quo
Benefits of Not Using GPOs
Benefits of Reformed GPOs
Discussion Points for Hospitals
HealthpointCapital Takeaway
Impact of GPO Reform on the Medical Device Sector
Impact of GPO Reform on the Orthopedic Device Market
Concluding Predictions and Recommendations
Acknowledgments
