GPO Initiative attracts Senate support
This article was originally published in The Gray Sheet
Executive Summary
Senate Judiciary Committee members Jon Kyl (R-Ariz.), Chuck Schumer (D-N.Y.), Ted Kennedy (D-Mass.), Sam Brownback (R-Kan.) and John Cornyn (R-Texas) endorse the Healthcare Group Purchasing Industry Initiative, with nine GPOs participating. Statements from some of the senators appear in a July 12 release issued by Premier, key coordinator of the effort to self-regulate GPO business practices. The Medical Device Manufacturers Association responds with a July 13 release arguing the Initiative will not adequately regulate GPO practices because the plan lacks a uniform contracting mechanism, independent oversight, penalties for non-compliance and a remedy for "excess fees" collected by GPOs. Senatorial backing of the Initiative, however, may dissuade the Antitrust Subcommittee from re-introducing GPO legislation (1"The Gray Sheet" May 23, 2005, p. 16)...