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Health Care Trends: GPOs Embrace New Cost-Cutting Initiatives

Executive Summary

The economic recession has forged tighter bonds between hospitals and their group purchasing organizations. Medtech interviews Novation LLC's president and CEO Jody Hatcher, who has set an aggressive tone in dealing with device manufacturers.

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AHRMM 2009: Hospitals Raise Bar on Purchasing Decisions

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A number of industry experts have long believed that any significant change in health care must be tied to reimbursement, and the Centers for Medicare and Medicaid Services (CMS) has begun a pilot project that will test that theory. Under a three-year plan called the Acute Care Episode (ACE) demonstration, five sites in the US have been selected to use a single, bundled-payment system for hospital and physicians services associated with 28 cardiac and nine orthopedic inpatient surgical services and procedures.

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