TIL in 1987 group purchase organizations (GPOs) were granted safe harbor exemption from the 1972 Anti-Kickback Statute that was a part of the Social Security Act amendments. This exemption forces healthcare supply companies to pay-to-play fees to GPOs in order to get their products to hospitals.

In some cases, manufacturers of healthcare products have to pay up to 94% of product sale back to GPOs.Of course companies just tack all of those unnecessary middleman GPO costs into the price of the product. In the end, patients, taxpayers, and companies pay billions of dollars for these useless middleman shenanigans.

https://ift.tt/eA8V8J Submitted October 28, 2021 at 12:03PM by JhoLow_1MDB https://ift.tt/3vShOBM