The Healthcare Group Purchasing Industry Initiative — which includes 11 group purchasing organizations — has reported that its members adhered to its model of fair, open and competitive business practices.
The HGPII included the following key findings in its eighth annual report to the public, based on accountability questionnaires completed by its GPO members.
1. Every member of HGPII has adhered to the six core principles in the initiative's charter. The principles include having a code of business conduct that establishes high ethical values, training staff members to adhere to that code, committing to the goals of quality and cost effectiveness, working toward an open and competitive purchasing process, sharing best practices and being accountable to the public.
2. Members are all actively enforcing a code of conduct that bans conflicts of interest.
3. HGPII organizations have met high standards for transparent bidding and awards processes.
4. Most members have maintained administrative fees of 3 percent or less, and those that bid products or services with higher fees disclose those amounts to members in accordance with the GPO Safe Harbor regulations.
5. The average contract term among members ranges from two to three years, although more complex products such as lab services may have five-year contracts.
6. Most HGPII members don't use sole-source vendor contracts.
7. Member GPOs show a general disinterest in bundling products, although they group related items and services in some cases for better pricing.
8. All member organizations report having the flexibility to contract for innovative technologies at any time. The organizations also promote innovation in various ways, such as by encouraging vendors to promote their products through web-based technology forums.
9. Members all have procedures in place to let their employees report possible ethics violations without fear of retaliation.
10. All members showed evidence of an active and accessible grievance policy for vendors, although most say vendors rarely use it.
11. Members give their employees written ethics policies and have them undergo an orientation concerning ethics and code of business conduct. Workers also attend periodic refresher sessions on company policies.
12. All of the members participated in the HGPII annual best practices forum.
13. Each organization is actively working to increase representation of women, minorities and veterans through their business contracts.
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