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FOR IMMEDIATE RELEASE
Contact: David McDonough
Phone: 703-243-9262

Wilensky Offers Insider's View of the Future of Health Care; GPO Panel Reacts with Their Perspective & Insight

WASHINGTON, D.C. (October 24, 2001) - Gail Wilensky, former administrator of the Health Care Financing Administration (now the Centers for Medicare & Medicaid Services) and current co-chair of the Presidential Task Force to Improve Health Care Delivery for Our Nation's Veterans, kicked off the final educational session, sponsored by Broadlane, at the Health Industry Group Purchasing Association's 2001 International EXPO on October 17. Following Wilensky's presentation, a panel of group purchasing executives gave their insights on where the health care supply chain is headed and what organizations can do to prepare themselves.

Wilensky gave EXPO attendees an intimate look at the current structure of Medicare and how it may evolve in the near future. She said that "long-term pressures [for Medicare reform and an expansion of benefits] will not go away…but that at the end-of-the-day, Congress probably won't do anything this term, particularly if President Bush's drug discount program proceeds."

Of particular note, Wilensky said that the pressure to restrain health care spending will increase in the near future, meaning purchasers will realize a greater need to find new ways to reduce purchasing costs. "To the extent that the squeeze on corporate profits and a shrinking economy are impacting providers and insurers, the pressure to reduce health care spending will rise."

As a result, Wilensky said, "if you are one of the group purchasers, then you clearly have a role in reducing health care costs. If you are one of the suppliers, you will be under even greater pressure" to reduce prices.

In the end, Wilensky said, "a lot of change is out their in the future" for organizations involved in the health care supply chain and the ability to work together to meet those changes will be crucial.

Following Wilensky, a distinguished panel of GPO executives took the stage to offer their insights. This panel was moderated by Bill Michels, President & CEO of ADR North America, and included Rand Ballard, President for GPO Business at MedAssets; Bruce Clark, Assistant Vice President for Shared Services at IHC/AmeriNet; Derwood Dunbar Jr., President & CEO of MAGNET; Eldon Petersen, Group Senior Vice President at Novation; Howard Sanders, Senior Vice President for Group Purchasing Services at Premier; and Ed Swierenga, Sales & Services at Broadlane.

HIGPA's annual International EXPO was held this year in Palm Desert, California. Over 620 executives and senior managers from health care related companies attended this three-day educational and networking event, including leading Silver Sponsors GlaxoSmithKline and Bayer Corporation.

GlaxoSmithKline, EXPO Silver Sponsor. GlaxoSmithKline-one of the world's leading research-based pharmaceutical and healthcare companies-is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For company information, visit the GlaxoSmithKline web site.

Bayer Corporation, EXPO Silver Sponsor. Bayer Corporation is a research-based company with major business in health care and life sciences, and chemicals. Headquartered in Pittsburgh, Bayer Corp. had sales of $10.1 billion in 2000 and is one of Fortune magazine's Most Admired Companies. It is a member of the worldwide Bayer Group, based in Leverkusen, Germany. For more information, visit Bayer Corporation.

HIGPA is a chartered trade association of approximately 175 health care purchasing and supply chain organizations that serve approximately three out of every four U.S. acute care hospitals, as well as most of the long term care, home care and medical group practice markets.

HIGPA's trading partner members include many of the world's leading health care product and medical supply manufacturers, distributors, wholesalers and related suppliers. HIGPA's industry members include for-profit and not-for-profit corporations, purchasing groups, associations, multi-hospital systems, and health care provider alliances. According to a recent study conducted by a former principal analyst at the Congressional Budget Office, hospitals save patients approximately $20 billion each year by purchasing products through group contracts.

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