Hospital Buyer

The New York Times is reporting on the ongoing investigation into hospital procurement practices led by Richard Blumenthal, Connecticut’s Attorney General. Last year the State Attorney had sent subpoenas to Yale-New Haven Hospital and was quoted in the New Haven Register as saying he was “very interested in potential undue influence exerted by vendors and manufacturers on individuals in positions to make health care purchasing decisions.” The investigation was then expanded to Healthcare Research & Development Institute (HRDI), a company owned by a group of hospital executives which offers advice to medical device and drug manufacturers.

This company used to be rather shy about itself and refused to disclose its members’ names in the past, though that is changing. According to the NYT Blumenthal is looking at whether membership limits in this organization (usually two competing companies in any specific field can join) might raise antitrust concerns by offering a cartel-like environment to its members.

The NYT article comes with the schedule of a recent four-day meeting in a posh resort in Colorado where hospital execs were entertained for free on top of the compensation paid by the attending companies such as GE Healthcare and Morgan Stanley. HRDI is headed by Gary A. Mecklenburg, a former chairman of the American Hospital Association and founding chairman of the National Alliance for Health Information Technology, President and CEO of Northwestern Memorial in Chicago as well as a member of BD’s Board of Directors. His concomitant involvement in the buyer side, the seller side and in-between illustrate the potential conflicts of interest at play. The Institute of Healthcare Executives and Suppliers (IHES) is another company operating with an organization and goals not-unlike HRDI’s.

Related entry: GPOs Should be Reformed Says MDMA-Funded Report

July 17, 2006 Related topics: Legal & legislative, Ethics & Scandals, Conferences & Events