The small and medium sized medical practice is finding its profit margin shrinking with every new compliance regulation and insurance readjustment. The opportunity to save money on the operations side may help grow a bottom line without having to levy new fees on patients or giving up office services. A group purchasing organization (GPO) leverages the power of numbers to lower prices for members without having to give up on the quality of the product.
The Centers for Medicare & Medicaid Services (CMS) released guidance to states and manufacturers regarding participation in value based purchasing (VBP) arrangements. The guidance also encourages states to participate in such arrangements as a means to address, as well as offset, higher cost drug treatments.
This guidance has been released through State Release #176 and Manufacturer Release #99, which are available for download by clicking here.
If you have any questions regarding the states and/or drug manufacturer releases, email MDROperations@cms.hhs.gov.