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The GPO Industry’s Efforts in Creating a Voluntary Code of Conduct: The Hanson Report

In: Group Purchasing Organizations

Author

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  • S. Prakash Sethi

Abstract

On April 7, 2005 the GPO industry announced its voluntary principles or code of conduct called the “Healthcare Group Purchasing Industry Initiative” (hereinafter referred to as the Initiative) or HGPII. The creation of the HGPII was not inspired by the industry’s self-realization of its obligations to the industry’s principal beneficiaries, or to better align industry members’ self-interest with those of their beneficiary clients. This Initiative was the industry response to (a) call for voluntary action by the Senate Judiciary Subcommittee on Antitrust, Competition, Business and Consumer Rights, and (b) to forestall any legislative action for greater governmental oversight and reporting requirements. The industry was also responding to the rising media criticism and regulatory concerns, lawsuits, and federal and state investigations of certain practices that were found to be prevalent among GPOs and their management. These practices were considered to be inconsistent with ethical and professional norms of business conduct in the healthcare industry.1

Suggested Citation

  • S. Prakash Sethi, 2009. "The GPO Industry’s Efforts in Creating a Voluntary Code of Conduct: The Hanson Report," Palgrave Macmillan Books, in: Group Purchasing Organizations, chapter 0, pages 93-105, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-62172-5_9
    DOI: 10.1057/9780230621725_9
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