COMPLIANCE CORNER: Group Purchasing Organizations: One Model, Two Safe Harbors
By STEPHEN SHAVER & DANIEL AYYASH
A Group Purchasing Organization (GPO) is a common structure in the healthcare industry. However, running a GPO in compliance with the Anti-Kickback Statute (AKS) involves a complex analysis of two distinct safe harbors under the AKS. A GPO is a negotiating agent that allows its members to leverage their combined buying power to obtain more favorable pricing and terms. Rather than each member negotiating with a given vendor independently, the GPO negotiates and maintains a master purchase agreement with the vendor on behalf of its members which allows the members to make purchases under the master agreement with better terms than the member could [Read More]