Hospital Purchasing Associations

Are hospital purchasing associations holding down nurse pay by creating an environment that rewards the lowest bidder? Over the past several years hospitals have turned to purchasing groups to negotiate the best rate for everything from medical supplies to supplemental staffing services. But are these purchasing groups a legitimate way for hospitals to contain skyrocketing costs or illegal monopolies?

Associations typically charge a management fee to hospitals in order to streamline and manage a bidding process. However many vendors complain that the process can create redundancies that actually drive up the overall cost to the hospital by creating a complex process. Other vendors have voiced concerns that state hospital associations are engaged in "price fixing" which translates into lower pay and benefits for vendor employees, typically contract nurses. Whatever your view is on these groups you can bet that the issue won't go away anytime soon as hospitals and vendors try to manage their own business interests in a very challenging economy.