If a drug manufacturer wants to supply a hospital, nursing home or other institution, it has almost no choice but to go through one of these organizations.
The manufacturers pay fees to the group purchasing organization for access to its customers.
The fees paid by manufacturers might ordinarily be considered illegal kickbacks under the federal anti-kickback law.
That safe harbor sticks in the craw of the group purchasing organizations’ critics.
“It’s the biggest scam in America, in my opinion,” Phillip Zweig, the executive director and co-founder of Physicians Against Drug Shortages, told me.
Persons:
“, ” Phillip Zweig, Zweig, Sara Sirota, Critics, Todd Ebert
Organizations:
Department of Health, Human Services, Physicians, BusinessWeek, American Economic Liberties, Federal Trade Commission, Akorn Pharmaceuticals, Bloomberg, India’s pharma, Healthcare, Chain Association
Locations:
America, United States, India