Comments of the Healthcare Supply Chain Association on the Department of Health and Human Services Blueprint to Lower Drug Prices and Reduce Out-of-Pocket Costs

On behalf of the Healthcare Supply Chain Association (HSCA), we appreciate the opportunity to provide comments to the Department of Health and Human Services (HHS) on the “Blueprint to Lower Drug Prices and Reduce Out-of-Pocket Costs.” HSCA represents the nation’s leading healthcare group purchasing organizations (GPOs), the sourcing and purchasing partners to virtually all of America’s 7,000+ hospitals, as well as the vast majority of the 68,000+ long-term care facilities, surgery centers, clinics, and other healthcare providers. We help our healthcare provider partners leverage their purchasing volume to negotiate competitive prices on healthcare products and services. Former FTC Chair Jon Leibowitz recently examined GPOs and found that they operate in a vigorously competitive environment and reduce healthcare costs for patients, hospitals, payers, Medicare and Medicaid, and taxpayers. One report estimated that between 2013 and 2022, GPOs will reduce healthcare spending by up to $864 billion. The value that GPOs deliver allow healthcare providers to focus on their core mission: providing first-class patient care.

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