IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-62172-5_5.html
   My bibliography  Save this book chapter

Government Created Protections of the GPO Industry: Financial Burden of GPO Activities on the U.S. Healthcare Industry

In: Group Purchasing Organizations

Author

Listed:
  • S. Prakash Sethi

Abstract

A major culprit in the protection of the GPO industry and the resultant costs and economic inefficiencies can be found in the regulatory protections created by the federal government in the form of the GPO anti-kickback safe harbor and the joint purchasing antitrust safety zone. Notwithstanding their initial intent, the anti-kickback safe harbor and the antitrust safety zone have had significant unintended negative consequences. Rather than helping the hospitals in securing supplies at the least cost, they have created incentives for the GPOs to maximize their revenues without necessarily providing the hospitals with the most cost effective and least expensive products. Furthermore, by sheltering them from market competition, they have led to a massive consolidation of the GPO industry, a further weakening of the bargaining power of both their customers and suppliers, and, exploitation of the market power for the benefit of the GPOs.

Suggested Citation

  • S. Prakash Sethi, 2009. "Government Created Protections of the GPO Industry: Financial Burden of GPO Activities on the U.S. Healthcare Industry," Palgrave Macmillan Books, in: Group Purchasing Organizations, chapter 0, pages 35-43, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-62172-5_5
    DOI: 10.1057/9780230621725_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-62172-5_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.