ANALYSIS: GPOs Helped Increase Domestic Manufacturing Capacity, Protected Hospitals and Patients from Thousands of Fraudulent Sellers, and Helped Identify and Bring New Suppliers to Market to Avert Supply and Drug Shortages During COVID-19
HSCA Releases Issue Brief Detailing Learnings and Best Practices from Industry COVID-19 Response.
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HSCA APPLAUDS SENATE HELP COMMITTEE CHAIR PATTY MURRAY AND RANKING MEMBER RICHARD BURR FOR BIPARTISAN DRAFT LEGISLATION TO ADDRESS U.S. PANDEMIC PREPAREDNESS
Washington, DC (January 31, 2022) – The Healthcare Supply Chain Association (HSCA), which represents the nation’s leading healthcare group purchasing organizations (GPOs), today released the following statement from President and CEO Todd Ebert, R. Ph., on proposed draft pandemic preparedness legislation from U.S. Senate Committee on Health, Education, Labor and Pensions (HELP)Chair Patty Murray (D-WA) and Ranking Member Richard Burr (R-NC):
“HSCA and its member GPOs applaud HELP Committee Chair Murray and Ranking Member Burr for their bipartisan effort to increase U.S. preparedness to combat future pandemics and other significant public health threats.
“Pandemics and other public health emergencies place enormous stress on the entire healthcare system. Healthcare group purchasing organizations have played a critical role in supporting COVID-19 response efforts, working closely with all stakeholders, including federal, state, and local health and emergency management agencies, to ensure that America’s providers have the supplies they need to safeguard patient care. GPOs have taken a number of innovative steps to combat the COVID-19 pandemic, including adding new and non-traditional suppliers and manufacturers to contracts to shore up domestic manufacturing; proactively communicating patient volumes and product demand surges to help expand manufacturing capacity for PPE and other vital supplies; harnessing data and cutting-edge technology to provide supply chain insights and improve care; and protecting healthcare providers from counterfeit or inferior products.
“Given the unique line of sight of GPOs over the entire healthcare supply chain, we look forward to closely reviewing the draft pandemic preparedness legislation, providing relevant insights to the Committee, and continuing to serve as a resource for Members of Congress and all stakeholders to help ensure U.S. preparedness for future pandemics.”
Healthcare GPOs are 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. GPOs work with providers to negotiate competitive prices and support a safe and reliable supply of products. GPOs lower costs for patients, providers, payers, Medicare and Medicaid, and taxpayers. One report estimated that GPOs reduce supply-related purchasing costs by 13.1 percent annually and will reduce healthcare spending by up to $456.6 billion between 2017 and 2026. GPOs are particularly critical to smaller and rural hospitals who often lack the purchasing power to procure the supplies they need. The value and services that GPOs provide allow healthcare providers and physicians to focus on their core mission: providing first-class patient care.
Click here to read more about HSCA’s work to combat COVID-19 and our recommendations to strengthen supply chain resiliency and support effective responses to public health crises.
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