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Committee advances administrative-code changes to allow healthcare GPO memberships for city purchases
Summary
The Rules Committee unanimously forwarded an amendment to the Administrative Code to clarify and expand the city’s authority to participate in healthcare group purchasing organizations (GPOs), clarifying the use of Vizient and distributor purchases and noting 340B pricing benefits for safety-net providers.
On Jan. 27, 2020 the Rules Committee forwarded to the full Board an ordinance amending the Administrative Code to clarify the city’s use of healthcare group purchasing organizations (GPOs) for public-health procurements.
Greg Wagner of the Department of Public Health told the committee that the change updates an existing 1997 provision to reflect industry changes: the GPO formerly identified by name (University Health Care Consortium) is now referred to generically as a healthcare GPO and the group the City participates in is now called Vizient. Wagner said the amendment would allow the city to join multiple GPOs if advantageous, and would explicitly permit purchases through distributors that secure negotiated rates for GPO members.
Wagner described the change as consistent with existing practice and beneficial for pricing and efficiency, noting that the City also receives highly discounted pricing through 340B status in certain circumstances. The committee moved the ordinance to the full Board with a positive recommendation and the motion passed unanimously.
The amendment is intended to align administrative-code text with current purchasing practice and to preserve the city’s ability to maximize pricing through GPO memberships and distributor arrangements.
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