The expert's report, which St. Francis used to bolster its argument, was "fatally flawed," the court said, as it applied the discount to all the products in the bundle. Further, the test can't be used when competitors offer all of the products in the bundle, which three of Bard's competitors do.
And because of the nature of GPO contracts, the hospitals are still free to buy from other sources and even use other GPOs. The St. Francis director of materials management clearly stated that he could have bought the products from Tyco, but liked Bard's products better. Since they are free to negotiate with other companies, they have not suffered any injuries.
The Health Industry Group Purchasing Association, a GPO trade group, lauded the decision.
"The court in Southeast Missouri Hospital has affirmed what the U.S. Department of Justice, Government Accountability Office, the Federal Trade Commission, and virtually all of the 5,000+ American hospitals have already found - GPOs reduce costs for hospitals," said HIGPA president Curtis Rooney in a statement. "As hospitals across the country continue to face down budget crises, they are increasingly relying on GPOs to reduce operating costs and to bring the best technology to market at the best value."
St. Francis is appealing the decision, the hospital's president and CEO Steven C. Bjelich told DOTmed News in prepared remarks.
Bard did not return calls for comment.
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