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February 5, 2007

In a statement issued by the Health Industry Group Purchasing Association (HIGPA) President Curtis Rooney said, "We urge Congress to reject the President's proposed FY 2008 Budget cuts to the Medicare and Medicaid program due to the potentially devastating effects they could have on important hospital services provided to the elderly, children, the poor and disabled Americans. While we appreciate the President's desire to restrain federal spending, dramatic cuts to these important programs are likely to further damage an already shaky health care system. At a time when hospitals are striving to improve patient safety by making investments in information technology systems, rebuild aging infrastructure and address workforce shortages, among other things, cuts to Medicare and Medicaid will curtail these initiatives."

"One way to address the nation's budgetary issues while improving health care quality is to protect and strengthen the role of GPOs," said Rooney. "Group Purchasing Organizations (GPOs) give hospitals and other health care providers the ability to increase their purchasing power, reduce costs, improve efficiency and protect the quality of care by purchasing medical devices, pharmaceuticals and other products at significantly discounted prices."

"We look forward to working with Congress and the Administration as the FY 2008 budget is considered."

The Health Industry Group Purchasing Association (HIGPA) is a broad-based trade association that represents 31 purchasing organizations. HIGPA's group purchasing industry members include for-profit and not-for-profit corporations, purchasing groups, associations, multi-hospital systems and health care provider alliances.

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