Group Purchasing

Abstract: Foreword (Lawton Robert Burns). Preface. Acknowledgments. The Authors. Introduction: A Burning Platform for Change. 1. Framing and Repositioning Management of the Health Care Supply Chain. 2. Managing Supply Risk and Cost Reduction. 3. Internal Customer Relationship and Performance Management. 4. Group Purchasing Organizations: Shaping the Health Materials Marketplace. 5. Inventory and Distribution Process: The Search for Strategy. 6. Organizational Design for Hospital and Health Care System Supply Chains. 7. Levels of Development for the Health Care Supply Chain. 8. Building Supply Chain Leadership and Resources for the Future. Study 1: The Value of Group Purchasing in the Health Care Supply Chain. Study 2: Clinician, Supplier, and Buyer Working as One to Improve Patient Outcomes. Study 3: Metropolitan Hospital System-A Study of a Hybrid Organizational Design. Study 4: Office of Inspector General Advisory Opinion No. 05-06, February 2005. Notes. Index.

Abstract: As on-line community activities have increased exponentially, the need for a group recommendation system has also become more and more imperative. Although, the traditional recommendation system has achieved great success in supporting individuals' purchasing decisions, it is not suitable for supporting group purchasing decisions because its input can neither include items' ratings given by groups, nor can it generate recommendations for groups. Therefore, this study proposes a novel group recommendation system to satisfy this demand. The system is designed based on the framework of collaborative filtering. Especially, we use genetic algorithm to predict the possible interactions among group members so that we can correctly estimate the rating that a group of members might give to an item. The experimental results show that the proposed system can give satisfactory and high quality group recommendations.

Abstract: Under the Physician Payments Sunshine Act, drug and device manufacturers and group purchasing organizations will report to the Centers for Medicare and Medicaid Services payments made to physicians and teaching hospitals, and the data will be posted on a public website.

Abstract: Background: Hospital purchasing alliances are voluntary consortia of hospitals that aggregate their contractual purchases of supplies from manufacturers. Purchasing groups thus represent pooling alliances rather than trading alliances (e.g., joint ventures). Pooling alliances have been discussed in the health care management literature for years but have never received much empirical investigation. They represent a potentially important source of economies of scale for hospitals. Purposes: This study represents the first national survey of hospital purchasing alliances. The survey analyzes alliance utilization, services, and performance from the perspective of the hospital executive in charge of materials management. This study extends research on pooling alliances, develops national benchmark statistics, and answers important issues raised recently about pooling alliances. Methodology/Approach: The investigators surveyed hospital members in the seven largest purchasing alliances (that account for 93% of all hospital purchases) and individual members of the Association of Healthcare Resource & Materials Management. The concatenated database yielded an approximate population of all hospital materials managers numbering 5,014. Findings: Hospital purchasing group alliances succeed in reducing health care costs by lowering product prices, particularly for commodity and pharmaceutical items. Alliances also reduce transaction costs through commonly negotiated contracts and increase hospital revenues via rebates and dividends. Thus, alliances may achieve purchasing economies of scale. Hospitals report additional value as evidenced by their long tenure and the large share of purchases routed through the alliances. Alliances appear to be less successful, however, in providing other services of importance and value to hospitals and in mediating the purchase of expensive physician preference items. There is little evidence that alliances exclude new innovative firms from the marketplace or restrict hospital access to desired products. Practice Implications: Pooling alliances appear successful in purchasing commodity and pharmaceutical products. Pooling alliances face the same issues as trading alliances in their efforts to work with physicians and the supply items they prefer.