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FOR IMMEDIATE RELEASE
Contact: Carolyn Hickey
Phone: 703-243-9262

Arlington, VA (October 30, 2002) - Senior vice president and chief economist at the Federal Reserve Bank of Dallas, W. Michael Cox, Ph.D., told senior health care executives at the Health Industry Group Purchasing Association's (HIGPA) 2002 International EXPO that there are two possible futures for the health care market: good and bad.

"I'm an economist not a specialist in health care, so I'm going to give you a 20,000 foot view," said Dr. Cox. The economist informed the audience on how health care has evolved throughout time in regards to: death rates, life expectancy, growth in health care spending, influx of technology, scientific advancements, market structure and lawmakers philosophy towards health care policies.

If the future of health care turns for the worst we are likely to see a decline in firms' investments into research and development, resulting in a reduction in innovation, limited products and services, and higher prices, according to Dr. Cox. On the flip side, Dr. Cox predicts a good future holds the promise of innovation through the investment of private and public funding into research and development, causing an influx of innovative technologies, resulting in increased revenue for firms and lower prices for consumers.

"So how do we get to the good future?" Dr. Cox said in concluding his presentation, "well that's up to you [the audience]."

Dr. Cox was joined by Mary Grealy, president of the Healthcare Leadership Council, L. Robert Burns, Ph.D., professor of health care systems at the Wharton School of Business, John Bardis, chairman and CEO of MedAssets, Inc., and George Mead, managing partner of Federal Insights who each talked about the consolidation trends in the supply chain industry, at the hospital level and within group purchasing organizations and how these deals affect the health care market. Dr. Cox and the panelists spoke on October 17 during the Second General Session, sponsored by Pharmacia.

HIGPA's annual International EXPO was held this year in Orlando, Florida. Over 640 executives and senior managers from health care related companies attended this three-day educational and networking event, including leading Silver Sponsors Aventis Pharmaceuticals and Merck & Company.

HIGPA is a chartered trade association of approximately 165 health care purchasing and supply chain organizations. HIGPA's Industry Members include purchasing groups, associations, and health care provider alliances. HIGPA's Trading Partner members include many of the world's leading health care product manufacturers, distributors, wholesalers and related suppliers. According to a recent study conducted by a former principal analyst at the Congressional Budget Office, hospitals save patients over $30 billion each year by purchasing products through group contracts.

To learn more about HIGPA or the group purchasing industry, visit www.higpa.org or call 703-243-9262.

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