FAST FOREW
ARD
EDITORIAL
ARD
Publisher/Executive Editor Kristine Russell
krussell@hpnonline.com
Senior Editor Rick Dana Barlow
rickdanabarlow@hpnonline.com
Managing Editor Jeannie Akridge
Be accountable
jakridge@hpnonline.com
(941) 927-9345, ext. 202
Contributing Editors Julie Williamson
jewilliamson@qwest.net
The venerable motto of the Boy Scouts of America is “be prepared.”
Susan Cantrell
It’s a mantra that should be – and typically is – embraced by health-
susan_cantrell@bellsouth.net
care professionals, particularly supply chain management.
ADVERTISING SALES
But another practical maxim should be wielded – and very well
East Coast Blake and Michelle Holton
(407) 971-6286
may be forced upon the healthcare industry by a government that
Midwest Donna Boatman-Riley
should reciprocate – is “be accountable.” It applies to data, decisions
(815) 393-4624
and actions. Of course, this will require considerable process improvement but more impor-
West Coast James A. Russell
(941) 921-0391
tantly serious behavior modification.
Previously, we focused on the misdirected aims of the Senate Finance Committee’s Sub-
ADVERTISING & ART PRODUCTION
Ad Contracts Manager Tiffany Coffman
committee on Antitrust, Competition Policy and Consumer Rights in its nearly decade-long
(941) 927-9345, ext. 203
educational 101 fishing expedition of group purchasing organizations. Fundamentally, those
Graphic Design Tracy Arendt
aims can be classified metaphorically as throwaway summer TV reruns when they should be
Art Services Gail Kaiser
jaw-dropping programs for fall TV sweeps.
MARKETING SERVICES
But the illustrious senators are sniffing around another area for that gotcha moment that
only a media-craving re-election campaign can salivate over. While it’s an area that impacts a
small percentage of hospitals as well as a few GPOs with a particular business model, it
nonetheless should ignite a blazing red flare as to how desperate these politicos are to stick it
to the GPOs and healthcare providers. The latest “Hail Mary” pass strategy involves some-
F
AST FOREW
Marketing Director Dick Page
MAILING LIST RENTALS
Kristine Russell
(941) 927-9345, ext. 201
CORPORATE
how taxing dividend or rebate checks as income.
President Kristine Russell
Why? Most of these hospitals may treat Medicare patients so they receive government
Healthcare Purchasing News (ISSN: 1098-3716) is published monthly
by KSR Publishing Inc., 2477 Stickney Point Road, Suite 315B,
funding. And by golly, CMS wants its cut of the proverbial pie – at least a much-larger slice. Sarasota, FL 34231, Phone: (941) 927-9345, Fax: (941) 927-9588,
Fans of this income source favor the year-end fiscal boost – or relief – it provides; foes
www.hpnonline.com, Business hours: 8:00 a.m.-5:00 p.m. EST.
decry it as exerting undue influence over contracting and product selection, the nugget of a EDITORIAL ADVISORY BOARD
long-simmering argument that GPOs allegedly control with anticompetitive motivations
Niklaus Fincher, vice president, purchased services sales & capital,
the delivery of healthcare in much the same way that insurance companies allegedly con-
VHA Inc., Irving, TX; Michael Rudomin, principal, HealthCare Solu-
tions Bureau LLC, Bolton, MA; Jean Sargent, director supply chain,
trol with similar motivations the reimbursement of healthcare delivery. As comedian Drew USC Health Sciences, Los Angeles, CA; Ray Taurasi, eastern regional
Carey once said on his eponymous television show back in the 1990s, “The great circle of
director of clinical sales and services, Healthmark Industries; John
Mateka, FAHRMM, executive director of supply chain operations,
crap is complete.”
Greenville (SC) Health System; Irwin Baker, president, RPM Health-
But the feds fret that hospitals aren’t reporting this dividend/rebate income to the govern-
care Strategies, Glen Head, NY; Joe Colonna, vice president, supply
ment as, well, income. It’s tax-free money for hospitals getting tax breaks for providing char-
chain management, Piedmont Hospital, Atlanta, GA; Robert
Simpson, CMRP, president and CEO, LeeSar Regional Service Cen-
ity care and/or receiving taxpayer-funded reimbursement for services. By golly, this shouldn’t ter and Cooperative Services of Florida, Fort Myers, FL; Bryant
be happening in America, particularly during healthscare reform! What do you think we’re
Broder, ACSP/product manager, Skytron; Melanie Miller, RN,
Manager Central Processing/Supply Chain/Materials Manage-
operating here, a capitalistic free-enterprise market?
ment, Cedars-Sinai Medical Center, Los Angeles, CA, Dee
GPOs make for a convenient target here. While those GPOs may, and most likely do as a
Donatelli, RN, BSN, MBA,vice president, supply chain services,
gesture of corporate fiscal responsibility, instruct their shareholders or rebate check qualifiers
VHA; Rose Seavey RN, BS, MBA, CNOR, ACSP, Seavey Healthcare
Consulting Inc.
how, where and why to report that income, GPOs are not the healthcare facility’s accounting
keeper. It’s the providers’ responsibility, so the feds should recalibrate their rallying cries.
SUBSCRIPTION RATES
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Of course, the enterprising GPOs simply can change their business models, make like
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their governmental accusers and call the checks something else or deliver the benefits in a
Foreign: $120.00 Industry Guide: $49.95
different way.
Special issues and back issues: $11.00 per copy, prepaid.
Certain individuals qualify for free subscriptions.
However, there’s another wrinkle that may inspire rekindling the memory and vision of
the late Sen. William Roth and his tax-reform-minded Roth IRA. These dividend and/or
CHANGE OF ADDRESS
Subscribers: For change of address, send your old and new addresses
rebate checks really are the healthcare facilities’ own money to begin with. They’ve either
to Healthcare Purchasing News, 2477 Stickney Point Road, Suite 315B,
invested up front in a GPO’s business model or they’re rewarded on the back end for fulfill-
Sarasota, FL 34231. Fax: (941) 927-9588, E-mail: subscriptions@
ing their contract commitments. Curmudgeons and cynics would clamor that the latter means
hpnonline.com. Allow 4 to 6 weeks for correction. All other inquir-
ies, call Tiffany Coffman at (941) 927-9345, ext. 203.
hospitals are just overpaying for products so larger discounts on the front end seems a logical
solution.
This should be familiar to the Internal Revenue Service. Taxpayers who receive govern-
ment refunds are paying too much to the IRS, effectively loaning the feds money that is
interest-free. So CMS, with its Congressional sidekicks, hopes to correct something that not
even the sibling agency IRS can solve with the citizenry. Oh, the irony. And this is the same
government that wants the healthcare industry to adopt efficiency-minded information tech-
nology that talks to one another to cut expenses.
KSR Publishing, Inc.
Obviously, the 2016 Olympic bid fervor simply clouded the federal bureaucrats’ rational
Printed in U.S.A. Copyright 2009 by KSR Publishing, Inc. All
rights reserved. No part of this publication may be reproduced
ability to spot analogies within their own Rube Goldberg-inspired government machine.
or transmitted in any form or by any means, electronic or me-
With all due respect, ladies and gentlemen, it’s time for a
chanical, including photocopy, recording, or any information
tune-up. More next month on what they could do after leav-
storage-and-retrieval system, without permission in writing from
the publisher. Healthcare Purchasing News is a registered trade-
ing the shop. mark used herein under license.
Office of publication: Periodicals Postage Paid at Sarasota, FL
34242 and at additional mailing offices.
Postmaster: Send address changes to: Healthcare Purchasing
News, P.O. Box 182, Osprey, FL 34229.
4 November 2009 • HEALTHCARE PURCHASING NEWS
www.hpnonline.com
0911-FastForeward.pmd 4 10/13/2009, 8:22 AM
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