GPOs are not the Cause of Drug Shortages

There are a few reasons why there may be drug shortages, but it has been found that GPOs are not one of them. This fact has been supported by the manufacturers such as Sagent and Hospira.

Drug shortage has been found to be caused by issues such as barriers to entry, manufacturing, and other disruptions. GPOs are doing all that they can to reduce these drug shortages and not the cause of the shortages.

GPO contracts are strictly voluntary and are the result of negotiations between certain parties. Hospitals, for example, are able to purchase off contract and do quite often. Contracts are subject to cancellation and pricing can be adjusted. Manufacturers are also able to adjust pricing as they see fit.

GPOs have no control over manufacturers and are not able to force manufacturers into entering contracts. GPOS work with manufacturers, distributors, and hospitals to ensure that a safe and steady supply of products is available for healthcare providers.

It has also been found that GPOs are responsible for delivering billions in cost savings each year to the healthcare system. They also deliver the best products available at the best possible value available to their hospital, healthcare, and long-term care providers.

Hospitals utilize GPOs to effectively group their purchasing power. GPOs do not sell, compound, manufacture, or take title to any drugs that are considered to be in shortage. They have a strong incentive to make sure that their patients are looked after and are able to get their needed medications when they need them. Without a product, GPOs are simply no longer needed.

After extensive research, it has been found by the U.S. Food and Drug Administration that GPOs are not the cause of any of the drug shortages but rather the shortages are caused by other factors.