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

Arlington, VA (October 23, 2003) - Senior executives from leading Group Purchasing Organizations (GPOs) joined trading partner executives in offering their candid opinions on issues of importance to the health care purchasing industry and its future during a roundtable discussion, moderated by Allan Fine, principal of Navigant Consulting, at the Health Industry Group Purchasing Association's (HIGPA) 2003 International EXPO.

Among the topics discussed was the relevance of GPOs in today's evolving marketplace. The GPO executives agreed that the challenge to their organizations is to maintain relevancy in the provider world. This includes offering more than just a contract, as GPOs move towards improving clinical product evaluation while preserving standards of accountability to providers and to each other. In regards to sourcing strategies, Mr. Fine asked the panel where the value lies for trading partners and how that value is distinguished. Trading partner executives identified three fundamental issues for GPOs to address in terms of redefining value - product cost must be driven down, the need for information regarding standardization and utilization, and an improved industry leadership view of the supply chain.

In looking ahead to 2004, Mr. Fine asked the panel to comment on their strategies towards clinical/physician preference items. GPO executives agreed it is necessary to hire experts with clinical expertise background, as well as use the most accurate and compelling data available in order to connect with hospitals. Mr. Fine summarized the panelists' opinions on the issue by observing that developing trust appears to be the key factor determining the future of relationships between manufacturers and suppliers.

The health care executives participated in the round table discussion on October 15, during the Fourth General Session. The panelists included: Rand Ballard, president of MedAssets, HSCA, Inc.; Victor Samolovitch, president of AmeriNet Central (substituting Bud Bowen, president of AmeriNet); Chris Fashek, president of KCI-USA, Inc.; Jeff Felton, senior vice president of McKesson Corporation; Bob Hamon, senior vice president of Premier, Inc.; and John Strong, president of Consorta.

HIGPA's annual International EXPO was held this year in Phoenix, Arizona. Over 700 executives and senior managers from health care related companies attended this three-day educational and networking event, including leading Silver Sponsor Bayer Corporation.

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, Pennsylvania, Bayer Corp. operates 50 manufacturing operations and 50 sales offices nationwide and employs approximately 22,000 people in the United States. For more information, visit Bayer Corporation on the Internet at www.bayerus.com.

HIGPA is a chartered trade association of over 175 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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