In reference to President Obama’s FY 2012 budget, Health Industry Group Purchasing Association President Curtis Rooney says group purchasing organizations will be key in helping achieve cost containment and savings for American hospitals, Medicare, Medicaid programs and American taxpayers, according to a HIGPA news release.
Mr. Rooney specifically cites the ability of GPOs to help hospitals and the healthcare delivery systems save up to $36 billion in annual price discounts and over $2 billion annually in human resource costs. Additionally, he cites recent studies that indicate GPOs will save Medicare between $104 and $230 billion from 2008 to 2017 and Medicaid between $74.1 and $162.5 billion during the same period.
"The President's FY 2012 budget is the first step in a critical cost containment process, and HIGPA and its members look forward to working with Congress and the Administration on ways GPOs can continue to help drive down healthcare costs, and to identify potential areas in the health care supply chain where there may be additional cost savings, such as increased transparency in medical device industry contracting,” Mr. Rooney says.
Read the news release about HIGPA (pdf).
Read other coverage about GPOs:
- GPO Trade Association Applauds State of the Union Health Care Cost Containment Focus
- Group Purchasing Organizations Ready for Global Location Numbers
- Small Medical Device Manufacturers, Pharmaceutical Companies and Distributors Show Support for GPOs