Healthcare group purchasing organizations provide a vital link in supporting healthcare providers to meet their greatest challenges —controlling costs while advancing quality patient care. GPOs pool the purchasing needs of hospitals, health systems and other providers to help lower the cost of buying drugs, supplies and medical devices.

The Healthcare Group Purchasing Industry Initiative
Nine of the nation’s leading GPOs, serving the majority of America’s hospitals, founded the Healthcare Group Purchasing Industry Initiative (the Initiative) in 2005 to promote and monitor best ethical and business practices in purchasing for hospitals and other healthcare providers. The Initiative has grown modestly in numbers since that beginning and welcomes inquiries from other like-minded GPOs. The goal of the Initiative is to assure ongoing adherence to ethical conduct and business practices, and to hold the confidence of the public and the Government in the integrity of the industry. Each GPO has committed to the Initiative at the highest level. The governing body of the Initiative is comprised of the nine founding GPO Chief Executive Officers, who serve as a Steering Committee to set the Initiative’s policies and programs.

Six Core Principles
At its founding, the Initiative established six core principles of ethics and business conduct and closely monitors actual practices to assure commitment to those Principles. The Principles require each participant to:

1. Have and adhere to a written code of business conduct. The code establishes the high ethical values expected for all within the Signatory’s organization.
   
2. Train all within the organization as to their personal responsibilities under the code.
   
3. Work toward the twin goals of high quality healthcare and cost effectiveness.
   
4. Work toward an open and competitive purchasing process free of conflicts of interest and any undue influences.
   
5. Have the responsibility to each other to share their best practices in implementing the Principles; each Signatory shall participate in an annual Best Practices Forum.
   
6. Be accountable to the public.

Effective September 21, 2007, the Initiative expanded on these core principles and adopted a Code of Conduct Principles, which is displayed for public viewing on this page. The Initiative welcomes public comment on the Code of Conduct Principles and on the detailed annual Public Accountability Questionnaire, which also is displayed on this page.

Role Of The HGPII Coordinator Regarding Grievances
From time to time disappointed offerors and others with a perceived grievance against a particular GPO will bring the matter to the Coordinator’s attention. The Coordinator is not an ombudsman nor judge. Nevertheless, the Coordinator is strongly interested in seeing that these matters are addressed on the merits with fairness.

The Coordinator will refer the inquiry to the appropriate GPO chief compliance officer, with a request that the GPO consider the inquiry and respond directly to the author of the inquiry, with a copy to me. Each GPO has established a formal grievance process and may be counted on to handle the matter appropriately. In the unlikely event that the Coordinator concludes that the GPO did not handle the matter appropriately, the Coordinator will bring the matter to the personal attention to the CEO of the GPO for personal review and appropriate action.

Richard J. Bednar, Coordinator
February 2008