Overhaul needed for supply chain practices in healthcare

Regarding the Feb. 13 feature story “No experience necessary” (p. 14): This is about one of the classic middle-market monopolies. Group purchasing organizations’ clandestine practices are not suited for modern day logistics. Undisclosed market access fees and overt marketplace allocation by the GPO industry dominate the supply chain. The end result is low supply and high prices.

Think of the simplest of supplies, such as saline solution or epinephrine, costing the consumer hundreds or even thousands of dollars for one patient treatment.

The GPO model is broken. It no longer benefits consumers. Empirical studies demonstrate billions of dollars of savings if we could simply eliminate GPOs’ exclusive contracting. Supply chain management is designed to be efficient and cost-saving. Healthcare is the sole exception to this model.

Dr. Robert Campbell

Lebanon, Pa.