Do GPOs charge too much? HIDA thinks so

September 7, 2007

A new white paper contends that GPOs charge too much for their administrative fees.

Group purchasing organizations charge acute care medical product distributors too much for their administrative fees. That's the contention of a new white paper from the Health Industry Distributors Association (HIDA). The association claims medical product distributors have overpaid GPOs to the tune of almost $700 million in fees over the past 10 years. HIDA added that part of this overpayment comes from assessing distributor fees based on the price of products they distribute. But these prices are set by manufacturers, not by distributors, HIDA pointed out. To obtain a copy of the paper, entitled Group Purchasing Organizations' Distributor Fee Formula Requires Scrutiny, contact Sandler@HIDA.org.

Click here to see more articles from Drug Topics Daily News.

To go to the Drug Topics homepage, click here.