While Capitol Hill debates health care reform and cost-cutting, an important gathering is taking place just down the road. Health care purchasing decision makers are meeting at the 2009 HIGPA International Expo at the Grand Hyatt Washington D.C., October 21-23.

The Health Industry Group Purchasing Association (HIGPA) represents 17 group purchasing organizations (GPOs). GPOs help health care providers, organizations and institutions save through group purchase and volume discounts.

At the meeting, HIGPA will provide information about a recent study that quantifies just how much in cost supply chain arrangements can drive out of the health care system. Other anticipated highlights include presentations by health policy leaders, a training session for suppliers, a reverse trade show in which vendors have the ear of GPO executives, and sessions on health reform, capital, and industry issues.
DOTmed Inks Two Deals

GPOs are well known for providing equipment and supplies economically. It turns out that group purchasing works for service agreements, too.

DOTmed, the online marketplace for medical equipment, has just signed two GPO business agreements, with AmeriNet and Magnet.

As an AmeriNet Choice Supplier, DOTmed provides discounts on equipment auction commissions. "DOTmed is proud to be part of AmeriNet's Choice portfolio--those private label contracts that provide extraordinary savings for AmeriNet members," said DOTmed's National Accounts Director David Baker.

Before DOTmed was created 10 years ago, hospitals and health care providers had no good way to liquidate used equipment.

"If they store it, it costs money, if they throw it away it's bad for the environment. If they trade it in, they get nothing near what it's worth," Baker said. "DOTmed can safely sell technology often before it has to be moved, and help find qualified de-installers."

GPOs and hospitals have been slow to recognize the huge waste at the end of the lifecycle of equipment. "They may have some contracts in their portfolio with liquidators, but DOTmed presents a unique model," Baker said. "DOTmed's model of safety and transparency has caught their eye to fix a break in the supply chain and fill a void."

Magnet has also signed a service contract with DOTmed to address the full equipment lifecycle including maintenance and disposition. "We are a good last piece to that puzzle of an integrated capital program," Baker said.

It appears that all eyes are on Washington this week for health care reform, and supply chain activities.

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