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  • [raise posture] explain the procurement system for American medical devices
  • Release time: 2017-03-15 Clicks:928 
  •  Historical evolution
    The U.S. health market is purchased through the Group Purchasing Organization (GPO). Through group procurement, the procurement activities have been controlled, and the cost has been reduced and the supply chain efficiency has been improved. According to 2004 statistics, in 2004 alone, group procurement cost us hospitals 10% to 15%, with total savings of $21.8 billion to $38.7 billion.
    GPO developed rapidly in the 1970s, and until then, most of its suppliers had signed contracts directly with individual hospitals. With the rapid development of medical industry, the demand for medical consumables is greatly increased in hospitals. According to statistics, hospitals and health care systems in the United States face the onerous task of purchasing and contracting more than 60,000 medical consumables worth $270 billion. The emergence of large-scale for-profit chain hospitals has increased the pressure on hospitals to control costs. Insurance companies and payers require high efficiency, transparency and low cost. Doctors have asked for broad selection of products to meet patients' medical needs. The group's procurement organization emerged as a "procurement partner" for hospitals and health systems, undertaking work related to contracting and procurement
    In the early 1970 s, around the group purchasing organization, purchasing organization, including regional hospitals private hospital chain procurement organization, voluntary union and government, amounted to more than 40. One of the fastest growing of these is the voluntary alliance, which now accounts for 75 per cent of all procurement organizations. In the 1980s, regional purchasing organizations jointly formed the "super group procurement organization", such as VHA, AMI, NME, etc. At the time, the U.S. government allowed group purchasing organizations to charge suppliers. In the 1990s, group purchasing organizations re-positioned themselves to conduct online transactions to improve their business models. Up to now, 90 percent of American hospitals have contracted out to group purchasing organizations, and 72 percent of hospitals have purchased contracts through group purchasing organizations. Novation and Premier, two purchasing organizations, account for more than 60 percent of the U.S. medical market.
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