HIGPA Adopts GPO Code of Conduct

Originally Published MX July/August 2002

BUSINESS NEWS

HIGPA Adopts GPO Code of Conduct

Ani Grigorian

Responding to industry criticism of the policies and practices of group purchasing organizations (GPOs), the Health Industry Group Purchasing Association (HIGPA) has drafted a voluntary GPO Code of Conduct—a set of principles "designed to assure the operation of a thriving, innovative, and competitive healthcare marketplace."

Creation of the code came after April hearings before the Antitrust, Competition, and Business and Consumer Rights Subcommittee of the U.S. Senate Judiciary Committee ended in a demand that GPOs devise such a code within 90 days. At the hearings, small device manufacturers had complained that single-source contracts with large device companies and costly administrative fees make it virtually impossible for them to remain competitive in the medical device market. The competitive edge of small device manufacturers is further dulled by the fact that healthcare purchasing is dominated by just two GPOs, Novation (Irving, TX) and Premier Inc. (San Diego).

The voluntary GPO