Healthcare Group Purchasing Organizations (GPOs) Poll Results Released

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Nationwide poll highlights expected GPO power notwithstanding Senate investigation or NY Times investigative articles.

Healthcare Group Purchasing Organizations (GPOs) will not only survive, but will thrive. That, according to a recently conducted nationwide poll, is the expectation of hospitals and suppliers. The positive outlook comes despite ongoing Senate investigations into GPO practices that has led to the Medical Device Competition Act of 2004 (S. 2880), as introduced by Senators Mike DeWine (R-OH) and Herb Kohl (D-WI), chairman and ranking member, respectively, of the U.S. Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights.

How well will GPOs partner over the next few years to suppliers and its membership? And which GPO is currently the best partner? Those are just some of the answers that StratCenter.com’s "Voice Your Opinion!" ("VYO!") Poll determined. This "VYO!" was submitted to the entire readership of StratCenter.com’s Supply Chain Strategies e-Newsletter during December 2004.

StratCenter.com is releasing its complete results and is making its analysis and presentation available at no cost to qualified business-of-healthcare executives via its website at: http://www.StratCenter.com/go/?11122.

"This "VYO!" provides an important understanding into how the market views the role of GPOs," says Patrick Michael Plummer, Founder & CEO of StratCenter.com. "The poll was broken down into three parts: Part I reports on GPO partnerships with its members (hospitals, IDNs, non-acute care, etc.); Part II reports on GPO supplier partnerships; and Part III answers the following question: 'If you could partner with only one GPO, which one would you choose?'" This poll was conducted of StratCenter.com's Supply Chain Strategies (SCS) e-newsletter readership in December 2004.

The industry expects that GPOs are responding much more aggressively to meet its members' needs, including the IDNs. Important to these results, members are acknowledging GPOs to be a valuable business partner, and are committing more allegiance to the GPOs in return. Novation came in tops overall for being the best partner to its members.

Overall, the market perception is that relationships between GPOs and suppliers will generally stay about the same as today, with just slightly more respondents believing it will deteriorate more than it will improve. Like the best partner to its membership, Novation also came in tops.

Still, there remain significant concerns that the Senate investigation into healthcare group purchasing, along with the potential passage of the Medical Device Competition Act, poses a grave threat to GPOs.

This "VYO!" poll reports on the seven (7) national GPOs in the United States, including Amerinet, Broadlane, Consorta, HealthTrust Purchasing Group, MedAssets, Novation, and Premier.

About StratCenter.com

StratCenter.com is an Intelligent Online Service providing hospital, IDN, and GPO databases and news for the healthcare supply chain.

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Patrick Plummer
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