Supply-side problem.

• Author: Mason, Mark
• Position: LETTERS - Letter to the editor

[ILLUSTRATION OMITTED]

This article ("Dirty Medicine," duly/August 2010) ranks up there as a shocker: Thomas Shaw strikes out to invent a safer syringe; he gets nowhere because there is no such thing as a free market in medical supplies. An important social function--tending to the sick--has been turned over to an institutional structure that offers rewards for domineering instead of engineering. If Mr. Shaw and the rest of us put a fraction of the energy, dedication, and focus he put into designing a safer syringe into redesigning the American economic system, I suspect the world would be a better place.

Mark Mason PhD

Via e-mail

To put it mildly, I was disappointed to read the recent Washington Monthly article by Mariah Blake that recycles old criticisms to disparage group purchasing organizations (GPOs). The author either failed to do basic factual research or completely ignored key viewpoints in an effort to advance someone's agenda.

Even after Broadlane pointed out a factual mistake during the research phase, the article's author still mischaracterized Broadlane's contract award process. Broadlane's clients--not Broadlane--make all contract decisions. Committees composed of hospital clinicians and hospital executives review proposals from the competing suppliers and decide which products to put under contract. Therefore, there is no mechanism for Broadlane to "push" a higher-priced product.

Broadlane never "locks out" bona fide suppliers. Broadlane publishes a bid calendar to all suppliers, as well as a plan of purchase to all its clients, so that all parties are fully informed of upcoming events and opportunities. All suppliers with products meeting the clients' clinical needs are given the same opportunity to be actively evaluated and considered for a contract position. Broadlane's clients have surprised the market many times by choosing emerging or non-incumbent suppliers for awards. Suppliers that can lower costs and offer products with superior attributes to improve the quality of health care win the awards. In fact, Broadlane currently has contracts with Retractable Technologies, the primary supplier mentioned in the article. Our clients are constantly looking for breakthrough technology to enhance their mission.

The best evidence of the value GPOs bring to the health care system is that sophisticated hospital systems in all regions of the country continue to use GPOs and attest to the significant savings they achieve through...