Medtronic's decision to cancel contracts with group purchasing associations including Novation and Premier. could be a sign of things to come for a medical technology industry seeking to boost profits any way it can.
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.
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.