Two speakers examine how GPO contracts like Vizient's stifle competition in medical devices. Large national deals with manufacturers like Stryker lock in 3% rebates and block local contractors from offering lower prices, creating unfair barriers that prevent better compliance and market competition.
What do you think the market interest would be in the device world to truly understand what's going on in the GPOs?
We, we, uh, got our Vizient contract, uh, last September, and the, you know, the compliance with GPOs is atrocious, right? And that's what our, our biggest challenge has been. And I think we all know that they lack value. To me, if that person was able to give us some secret sauce on how to drive compliance, that would be Huge.
Well, we know, you know, I'll give you a very quick factual statement. You know, when they make these big deals with Strykers and the big companies out there, they— and you come in and try and negotiate a local contractor, you want to get on contract and actually have a lower price or whatever, they won't allow that because their deal is so big with these big companies that they can't have someone cheaper on their GPO or even to do a local contract that would affect that 3% rebate from the big spend on the big companies.