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GROUP PURCHASING ORGANIZATIONS

GROUP PURCHASING ORGANIZATIONS : How GPOs Reduce Healthcare Costs and Why Changing Their Funding Mechanism Would Raise Costs A Legal and Economic Analysis Dan O Brien, Jon Leibowitz, and Russell Anello Table of Contents I. Executive summary ..3 II. Introduction ..5 The GPO Safe GPOs reduce healthcare costs ..6 Competitiveness of the GPO Effects of vendor funding of The neutrality principle ..7 Transaction costs.

See, e.g., U.S. Government Accountability Office.“Group Purchasing Organizations: Funding StructureHas PotentialImplications for MedicareCosts” (Report GAO-15-13, General Accountability Office, Washington, DC, 2014)[hereinafter “GAO(2014)”], 7note 13. We do not adopt that terminology in this paper.

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