Senate Probes Medtronic Decision To Nix GPO Contracts

Law360, New York (May 3, 2011, 5:45 PM EDT) -- A U.S. Senate committee launched an investigation Monday into medical device giant Medtronic Inc.'s recent decision to cancel contracts with a major group-purchasing organization, noting concerns over increased costs for hospitals, Medicare and Medicaid.

Senate Finance Committee chairman Max Baucus, D-Mont., kicked off the inquiry in a letter to Medtronic President and CEO William A. Hawkins III requesting information on the canceling of five contracts with Novation LLC and its relationship with other GPOs, which help hospitals, nursing homes and other health care entities combine their...
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