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Dark Territory: Lifting The Veil On GPOs And PBMs

 
• By Robert Burns

Based on a new report by the Wharton School, this article tackles criticisms against the intermediaries that connect buyers and sellers, the GPO and PBM. It also analyzes the existential threats facing these intermediaries such as 'safe harbors', threats of disintermediation, and the consolidation of suppliers.

• Source: Shutterstock

“Dark Territory” describes a section of railroad track not controlled by any signals. There are safety concerns due to the absence of train detection. There is a lessened ability to detect mis-alignment in track switches, broken rails, or runaway rail cars. It is dark and mysterious.

Health care’s version of dark territory consists of intermediaries that connect buyers and sellers. Often, these intermediaries are widely mistrusted...

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