Information please

Healthcare Purchasing News, Sept, 2003 by Jamie C. Kowalski

To the Editor,

The highlights of the results of the study commissioned by the Health Industry Group Purchasing Association (HIGPA), conducted by the Lewin Group, were striking ("Value study in hand, groups hope to sidestep new Senate grilling," Healthcare Purchasing News, July 2003, p. 16). What particularly struck me was that, according to the article, they completed the study based on a survey of "health system sup ply chain executives representing 183 hospitals in 33 states ..."

Some of the "findings" were presented as data ("... GPOs provide an average 10.4 percent savings ..."). Yet, it seems that this was not really a study, but an opinion poll. No disrespect is intended toward the supply chain executives who provided the opinions, since their knowledge, experience and ability to "estimate" the answers to these questions, are noteworthy. However, "data" obtained in such a manner are not as reliable as a real study that analyzes actual costs, resources, etc.

In over 30 years working in healthcare supply chain management (covering all links of the chain), I have learned that, hospital supply chain executives do not have the data to actually know how to provide the answers presented by the HIGPA/Lewin survey/study. In our work with over 700 hospitals and 240 IDN supply chain executives, very few have the data or have ever studied their supply chain resources and/or GPO costs mad benefits, to allow them to determine exactly how much the GPO saves and/or how many FTEs would be needed in house to replace a GPO. What they offered were guestimates and opinions. I think it is very risky for an organization to claim, in a valid way, quantified value provided based on such opinions.

If HIGPA wants to validate the value provided by GPOs, the better approach would be to do a detailed study, not just an opinion poll.

Jamie C. Kowalski

President

Kowalski-Dickow Associates

Milwaukee, WI