Sup­pli­ers re­spond to stepped-up scrutiny

Modern Healthcare - - SPECIAL REPORT -

Grow­ing dis­con­tent about tra­di­tional sup­ply-chain prac­tices and in­creased fi­nan­cial pres­sure to re­duce costs lead to scrutiny for sup­pli­ers and sup­ply-chain com­pa­nies. With Washington and Wall Street keep­ing an eye on the health­care sys­tem’s over­all costs, sup­pli­ers push back. Early in the year, Medtronic’s can­cel­la­tion of con­tracts with two group pur­chas­ing or­ga­ni­za­tions leads to a law­maker’s in­ves­ti­ga­tion, while phar­macy ben­e­fit man­agers find them­selves on the de­fense af­ter Pfizer bro­kered deals with in­sur­ers to en­cour­age use of branded drugs af­ter the loss of patent pro­tec­tion.

Even the Food and Drug Ad­min­is­tra­tion’s tra­di­tional ac­tions are met with in­ten­si­fied scrutiny.

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