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Resource ID: #22442
Subject: Hospitals
Source: FW Weekly, (Fort Worth, TX)
Date: 11/23/05



Novation, a group purchasing organization based in Texas, was created to negotiate lower prices with medical supply manufacturers on behalf of one-third of the hospitals nationwide. It has been accused of actually raising prices and squeezing out small manufacturers. Thanks to an exemption granted by Congress, from anti-kickback laws, Novation is financed by the very manufacturers it's supposed to be fighting.

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