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Group Purchasing Organizations: services provided to customers and initiatives regarding their business practices: report to the Ranking Member
by:United States. Government
Original publisher: [Washington, D.C.] : U.S. Govt. Accountability Office,  OCLC Number: (OCoLC)741650243 Subject: Hospital purchasing -- United States -- Evaluation. Excerpt: ... purchase price. One of these GPOs reported that agreements with contract administrative fees above 3 percent constituted less than 5 percent of all vendor contracts in...
Original publisher: [Washington, D.C.] : U.S. Govt. Accountability Office,  OCLC Number: (OCoLC)741650243 Subject: Hospital purchasing -- United States -- Evaluation. Excerpt: ... purchase price. One of these GPOs reported that agreements with contract administrative fees above 3 percent constituted less than 5 percent of all vendor contracts in 2008. The other GPO reported that these agreements constituted less than 10 percent of all vendor contracts in 2008. The six GPOs combined reported collecting a total of about $ 1.7 billion in contract administrative fees in 2008 and about $ 320 million in other revenue. GPOs in our review reported distributing a portion of their revenue - including revenue from contract administrative fees - to their customers 18 and owners. The six GPOs combined reported distributing a total of about $ 1.1 billion in 2008. The GPOs reported distributing about 53 percent of their total revenue that year. GPOs reported distributing revenue to their customers based on a number of factors, such as a customers ' purchasing volume or the percentage of contract administrative fees produced through customer purchases. GPOs also generally reported distributing revenue to owners, who may also be customers, based on 19 their share of ownership in the GPO. The GPOs in our review reported that they have revised their codes of GPOs Reported That conduct and established a voluntary membership association focused on Since 2002 They Have promoting best practices and public accountability among member GPOs. The GPOs reported making a range of revisions to their codes of conduct Revised Their Codes since 2002 in order to strengthen, clarify, or update these codes of of Conduct and conduct, which comprise the GPOs ' contracting and conflict of interest policies. For example, to ensure customers ' access to new and innovative Formed a Voluntary products, one GPO reported revising, in 2005, a policy in its code of Membership conduct that requires th...
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