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Group purchasing organizations spin cost savings (Morning Read)

Contrary to popular health economic wisdom, the group purchasing organization raises costs for hospitals, according to a study by two respected economists, writes the Health Populi blog. Meanwhile, the Health Industry Group Purchasing Association tried to get ahead of the negative industry study (pdf) with promises of members being ahead of health reforms that would reduce cost.

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Spin, GPOs, spin. Contrary to popular health economic wisdom, the group purchasing organization raises costs for hospitals, according to a study by two respected economists, writes the Health Populi blog. Meanwhile, the Health Industry Group Purchasing Association tried to get ahead of the negative industry study (pdf) with promises of members being ahead of health reforms that would reduce cost.

Stem cell technology going mainstream. After months of hunting, San Diego-based startup Fate Therapeutics is announcing later today that it has struck a partnership with medical technology giant Becton Dickinson (NYSE: BDX) to take its stem cell technology mainstream, at least for academic and pharmaceutical industry labs, reports Xconomy San Diego.

AT&T’s deal with WellDoc is big. AT&T announced plans to offer WellDoc’s FDA-approved mobile phone-based diabetes management solution to a select group of AT&T employees sometime in 2011, according to Mobihealthnews.com.

Hospitals raise fewer donations. Donors to hospitals and other health care institutions kept an even tighter hold on their purses and wallets in fiscal 2009, giving $944 million less than in fiscal 2008, representing an 11 percent decline, according to an Association for Healthcare Philanthropy report in American Medical News.

Icagen splits to stay on NASDAQ. Durham, North Carolina, drug development company Icagen did a reverse stock split last month to satisfy minimum listing requirements on the NASDAQ Stock Market so the company’s stock could continue trading there, according to the News & Observer.