CHARTER OF THE HEALTHCARE GROUP PURCHASING INDUSTRY INITIATIVE
The Healthcare Group Purchasing Industry Initiative ("HGPII") was established in 2005 by major healthcare group purchasing organizations who pledged to adopt and implement a set of principles of business ethics and conduct that acknowledge and express their responsibilities to the public and to government entities which fund healthcare services in the United States.
Healthcare group purchasing organizations (GPOs) are an essential link in the supply chain of healthcare providers such as hospitals, clinics, and other delivery organizations. GPOs aggregate the purchasing activity of their members, thereby lowering costs in both the purchasing activity itself and in the prices at which products and services are purchased. GPOs also enable members to coordinate collection of data and improvement of systems essential to the quality of care and the reduction costs.
By joining the Healthcare Group Purchasing Industry Initiative, member organizations pledge both to follow a set of Core Principles and to participate in an ongoing dialogue with other GPOs and with various organizations, including the Department of Health and Human Services, regarding the most effective policies and procedures for implementing these Principles.
The Healthcare Group Purchasing Industry Initiative Principles are:
1) Each Signatory shall have and adhere to a written code of business conduct. The code establishes high ethical values and sound business practices for the Signator's group purchasing organization.
2) Each Signatory shall train all within the organization as to their personal responsibilities under the code.
3) Each Signatory commits itself to work toward the twin goals of high quality healthcare and cost effectiveness.
4) Each Signatory commits itself to work toward an open and competitive purchasing process free of conflicts of interest and any undue influences.
5) Each Signatory shall have the responsibility to each other to share their best practices in implementing the Principles; each Signatory shall participate in an annual Best Practices Forum.
6) Each Signatory, through its participation in this Initiative, shall be accountable to the public.
As they pursue these Principles, Signatories will take a leading role in making the Principles a standard for the entire healthcare group purchasing industry, and a model for other healthcare industries.
Annual Public Accountability Questionnaire
On an annual basis, each Signatory organization files a report with the Initiative Coordinator responding to the questions in the Annual Public Accountability Questionnaire (PAQ). These reports will be available to the public, and will be used by the Initiative Coordinator to compile a summary report on the adherence of Signatories to the Principles and a report on evolving Best Practices in fulfillment of the Principles. The PAQ captures information about Member GPO’s business practices, codes of conduct, conflict of interest policies, fee structure, bid process, and many other in-depth issue areas.
Click here to read responses to the 2012 Public Accountability Questionnaire.
Click here to read the 2012 Public Accountability Questionnaire.
The Healthcare Group Purchasing Industry Initiative consists of a Steering Committee, a Working Group, and an Initiative Coordinator.
The Steering Committee, consisting of the CEOs of all Signatory organizations, shall set policies for the Healthcare Group Purchasing Industry Initiative, upon recommendationof the Working Group. (as the Initiative grows in membership, the membership of the Steering Committee and Working Group may be limited to a representative group.)
The Working Group, consisting of one designee from each Signatory organization, shall be responsible for the continuing activities of the Healthcare Group Purchasing Industry Initiative, shall determine the annual assessment for each Signatory organization, commensurate with the Signatory's annual revenues, to fund the expenses of the Healthcare Group Purchasing Industry Initiative.
The Initiative Coordinator shall be the day to day operating officer of the organization, planning and conducting meetings, including the annual Best Practices Forum, receiving and tabulating the Annual Public Accountability Questionnaires, and preparing an annual report on the adherence of Signatories to the Principles and trends in Best Practices.
The Coordinator will review the annual questionnaires for responsiveness, completeness, and accuracy, following up with participating organizations to recommend remedial action. The Coordinator will also make recommendations to the Working Group and the Steering Committee regarding the continued participation of organizations that do not take adequate remedial action.
Membership in the Healthcare Group Purchasing Industry Initiative is open to any healthcare group purchasing organization, including those entities in which group purchasing is only one of many activities of the organization. At the time of joining, members must pledge to follow the Principles, to file the Public Accountability Questionnaire annually, and to participate in the annual Best Practice Forum.
The Healthcare Group Purchasing Industry Initiative does not anticipate refusing any good faith membership application or renewals, but does reserve the right to refuse or suspend membership privileges for cause.