Volume discounts seen as partial solution to growing healthcare costs

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President Obama and Congress will consider numerous ways to trim healthcare outlays in the coming weeks and months. Perhaps they should take a closer look at what group purchasing organizations are already accomplishing. Such organizations are saving $36 billion in healthcare expenses each year, according to a new study by Dr. Eugene S. Schneller, principal of Health Care Sector Advances, and a professor at Arizona State University. These organizations work by pooling participants, which allows them to realize lower costs than would otherwise be possible. Schneller argues that additional savings could be realized by expanding the role that group purchasing organizations play within the healthcare arena.