Hospitals and other health care organizations long known for weak purchasing practices are starting to adopt world-class procurement strategies, creating a new, more cost-competitive landscape for medical devices.
Typical of the concerns by suppliers is this statement from a financial document filed two weeks ago by West Pharmaceutical Services, a major medical molder and consumer of plastics:
"Group purchasing organizations and integrated health delivery networks have served to concentrate purchasing decisions for some customers, which has placed pricing pressure on suppliers. Further consolidation within the industries we serve could exert additional pressure on the prices of our products."...