Suppliers respond to stepped-up scrutiny
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.