Evaluating the centralized purchasing policy for the treatment of hepatitis C: The Colombian CASE

The high cost of drugs for hepatitis C limits access and adherence to treatment. In 2017, the Colombian health care system decided to design a strategy. It consisted of centralized purchasing, regulations, clinical practice guidelines, and direct observation of the treatment and follow-up of patients. The main objective of this study was to assess the centralized purchasing strategy in Colombia. The study design was a policy implementation assessment. We analyzed the change in prices, the clinical outcomes, and the opinions of stakeholders using data from the Ministry of Health. Additional information about effectiveness came from the Colombian Fund for High-Cost Diseases and semi-structured interviews of the stakeholders. The follow-up was from October, 2017 to October, 2018. The total number of patients reported in the cohort period was 1069. The number that finished 12 weeks of treatment, completed the follow-up for the case closure, and were considered cured through the end of October, 2018 was 563 (53%). The remainder, 506 patients (47%), are currently in treatment. A total of 543 of these treated patients (96%) were cured. After implementing this strategy, the drug prices decreased by more than 90% overall. Before implementation, the total direct cost was $100 102 171.75 dollars. Afterward, the cost was $8 378 747 dollars.

The effects of rebate contracts on the health care system

Group purchasing organizations gain increasing importance with respect to the supply of pharmaceutical products and frequently use multiple, exclusive or partially exclusive rebate contracts to exercise market power. Based on a Hotelling model of horizontal and vertical product differentiation, we examine the controversy around whether a superior rebate scheme exists, as far as consumer surplus, firms' profits and total welfare are concerned. We find that firms clearly prefer partially exclusive over multiple, and multiple over exclusive rebate contracts. In contrast, no rebate form exists that lowers total costs per se for the consumers or maximizes total welfare.

Shared ownership: what's the future?

The status of library consortia has evolved over time in terms of their composition and alternative negotiating models. New purchasing models may allow improved library involvement in the acquisitions process and improved methods for meeting users' future needs. Ever-increasing costs of library resources and the need to reduce expenses make it necessary to continue the exploration of library consortia for group purchases.

Bang without the buck? Bypassing merger, four systems look for buying power, reduced costs with collaboration

Four not-for-profit systems are banding together in an arrangement that falls short of a merger but aims to increase the partners' buying power. "We favor the idea of local control and local governance. It's not financial because we've had as good a financial year as we've had in a decade," says Steven Edwards, president and CEO of CoxHealth.

Biggest winners. Optimizing group purchasing relationships

One of the primary objectives hospitals and health systems have in any relationship with a group purchasing organization (GPO) is to save on their overall supply spending. So we wondered how some of the top-performing hospitals cutting supply costs with the help of their GPO achieved their results. This report profiles four hospitals and health systems who achieved millions of dollars in savings in the first year of their GPO relationship and beyond. As you'll find, winning physician alignment on managing costs played a key role in many of the successes.

Will GPO reforms negate Senate showdown?

Even with all the bad press given to GPOs since the initial investigation by the Subcommittee on Antitrust, Competition, and Business and Consumer Rights, materials managers still value GPOs' role in health care. Many have stated that GPOs are evolving, becoming more flexible to help further meet the needs of hospitals. While the government frowns on the fees paid by hospitals, those in purchasing positions say that they gladly pay fees because of how effective GPO involvement is during contract negotiations.

Unlikely GPO partners unite. Could Consorta and Healthtrust's collaboration spark a trend among the nation's other top group purchasing organizations?

Consorta's deal to become the sixth equity owner in HealthTrust Purchasing Group could signal a wave of consolidation at group-purchasing organizations. HealthTrust's clinically based decisionmaking for product selection and contract compliance are what swayed Consorta's board, says Chairman Louis Fierens, left. "It's about the total value, and it is at the end of the day a fairly simple equation", Fierens says.