U.S. Sen. Richard Blumenthal (D-Connecticut) is seeking help from the Federal Trade Commission and his colleagues in Congress to find out whether hospital group purchasing organizations are playing a role in larger bills for patients and possible shortages of some medications and medical supplies, according to a New Haven Register report.
Sen. Blumenthal, who has a long record of scrutinizing GPOs, told the New Haven Register he has spoken to "a number of colleagues" in the senate, including members of the antitrust subcommittee, about a safe harbor provision currently included in federal law, which allows GPOs to collect fees from suppliers when they negotiate contracts on behalf of groups of hospitals.
He questions whether the provision needs to be repealed. However, he said any legislation on the matter would need bipartisan consensus, and to get that, the Senate would need to find out more about whether GPO fees actually drive up healthcare costs, according to the report.
"There may well be a need to repeal the safe harbor provisions," Sen. Blumenthal told the New Haven Register. "But that's a judgment that I will make after building a factual record and amassing the evidence that will be necessary for any legislative solution to be successful."
GPOs, such as Vizient, contend that without the current safe harbor provisions, small and rural hospitals would not be able to afford certain devices or give their patients the highest quality of care, according to the report.
"We firmly believe that the current GPO structure is the best structure to lower healthcare costs for providers, payers and patients," Vizient spokeswoman Angie Boliver told the New Haven Register. "As today's hospitals struggle to meet rising costs, we — like other GPOs — are working with our provider customers in even more revolutionary ways, using data, analytics and other tools to develop and advance ways to reduce costs while improving patient results."
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