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GPO_Inventory PPT

GPO_Inventory PPT - Group Purchasing Organizations(GPO and...

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S T E V E N L . D ’ A M A T O R P H , B C O P M A I N E C E N T E R F O R C A N C E R M E D I C I N E S C A R B O R O U G H , M E Group Purchasing Organizations (GPO) and Inventory Management
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The Oncology Market y $16 billion market growing to $40 billion in 2012 y 1.5 million new patients diagnosed annually y 85% of patients treated in community setting y In 2004, 75% of medical oncology revenue came from buy and bill of drug products, dropping to 43% in 2007 y 350,000 patients in chemotherapy y Over 770 oncology drugs in the pipeline ( Ç orals) y Growing reimbursement challenges
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The Players y Manufacturer y Wholesaler/Distributor y Group Purchasing Organization y Oncology Practice/Hospital
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$70 Billion $54 Billion $ 3 Billion (swag) $2.7 Billion $9 Billion $ 3 Billion (swag) Wholesaler – Distributor - GPO
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Other Players y Metro Medical – Distributor/GPO y Florida Infusion (Oncology Associates) y Priority – Moved to Specialty Pharmacy y Innovatrix y BDI Pharma
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The Supply Chain-Some History y In 1990, Oncology Supply, PRN, and Florida Infusion are it y OTN launches in 1990 y Bergen launches ASD (Specialty Distributor) in oncology in 1993 y Cardinal acquires PRN (Specialty Distributor) and names it NSS y State Societies start to form GPO’s (SSGPO’s) to aggregate purchasing power y AOR (precursor to USON) enters market and begins acquiring practices and becomes a major drug purchaser y OTN enters into joint venture with BMS in 1993 y USON partners with Cardinal for distribution in 1994
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The Supply Chain-More History y ION launches and partners with Oncology Supply around 1997 y AmerisourceBergen acquires ION (1997) y AOR and PRN (a different one) merge to form USON in 1999 y NOA launches in 2001 and partners with OTN y BMS sells OTN to One Equity in 2004 y NOA and OTN break up in 2005 y OTN launches Onmark y NOA partners with Cardinal in 2005 y NOA buys itself back from Broadlane in 2005 y OTN buys Cardinal Specialty (NSS) in 2006 y McKesson buys NOA in 2006 y McKesson buys OTN from One Equity in 2007
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Group Purchasing Organizations (1/2) y Practice joins GPO as a member y GPO maintains a database of contracts and practices y Practice enters into a contract with pharmaceutical manufacturer y Manufacturer notifies GPO of practice eligibility y GPO loads contract into their database and notifies distributor of contract eligibility y Distributor flags their database that practice is eligible for contract price
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Group Purchasing Organizations (2/2) y Practice purchases drug from distributor at contract price y
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