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January 4, 2008

In a statement issued by the Health Industry Group Purchasing Association (HIGPA), President Curtis Rooney said, "The President's 2009 budget is one more bad omen for the future of this country's healthcare system. The President's budget seeks to again cut the federal health insurance programs including Medicare. 2009 marks the second year in a row the President has proposed significant cuts to federal healthcare programs for hospitals and other healthcare providers which ultimately will be felt by seniors and the disabled. Compounding these cuts is an already strained system that has just begun to deal with the aging baby boomer who will require even more medical services in the coming years. While we appreciate efforts to maintain fiscal responsibility, the growing fiscal deficit requires a strong plan that does not compromise patient care."

"Implementing measures that increase hospital and healthcare provider purchasing power is one way to alleviate the pressure that providers feel in the delicate balance between quality care and cost. Strengthening the role that Group Purchasing Organizations (GPOs) have on negotiating contracts and supplying hospitals with products and services at significant discounts allows federal programs more opportunities to improve efficiencies and reduce costs."

"We look forward to working with Congress and the Administration as the FY 2009 budget is considered."

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