On July 16, the U.S. Department of Health & Human Services, Office of Inspector General (OIG) issued an unfavorable Advisory Opinion concerning an arrangement involving a proposal to offer members of a group purchasing organization (GPO) an equity interest in the GPO’s parent organization in exchange for the member to:
- Extend its contract with the GPO for 5 to 7 years;
- Commit not to decrease purchasing volume; and
- Relinquish its right to a portion of the administrative fees that would otherwise have been passed through to the members.
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