Health Industry Group Purchasing Association President Curtis Rooney has issued a statement on the recent decision by medical device manufacturer Medtronic to cancel some of its largest GPO contracts, calling the move "nothing short of an attack on America's hospitals."
Medtronic recently cancelled several contracts with GPOs Novation and Premier, saying that the company wants to manage its business relationships with hospitals locally, rather than through a national GPO contract.
"GPOs work on behalf of hospitals and other health care providers, and GPO contracts are based on strong competitive forces. Manufacturers compete with one another to win business by offering the best products and services at the best value," Mr. Rooney said. "Medtronic has simply abdicated this competitive space in an effort to prevent hospitals from banding together to get the best deals. The result is purely predatory."
Read the letter from HIGPA President Curtis Rooney about Medtronic (pdf).
Read other coverage about Medtronic:
- Medtronic Cancels Spine Contract With GPO Premier
- Medtronic's Sudden Contract Exit May Signal Negative Trend for GPOs
- Medtronic Terminates 5 Contracts With Healthcare Supplier Novation
Medtronic recently cancelled several contracts with GPOs Novation and Premier, saying that the company wants to manage its business relationships with hospitals locally, rather than through a national GPO contract.
"GPOs work on behalf of hospitals and other health care providers, and GPO contracts are based on strong competitive forces. Manufacturers compete with one another to win business by offering the best products and services at the best value," Mr. Rooney said. "Medtronic has simply abdicated this competitive space in an effort to prevent hospitals from banding together to get the best deals. The result is purely predatory."
Read the letter from HIGPA President Curtis Rooney about Medtronic (pdf).
Read other coverage about Medtronic:
- Medtronic Cancels Spine Contract With GPO Premier
- Medtronic's Sudden Contract Exit May Signal Negative Trend for GPOs
- Medtronic Terminates 5 Contracts With Healthcare Supplier Novation