Contracting News December 2011

Bellwether League healthcare supply chain hall of fame inducteesBellwether League inducted seven supply chain professionals into its “healthcare supply chain hall of fame.” They are (left to right): Laurence Dickson, retired corporate director of materials management; Daniel Dryan, retired hospital supply chain executive; Steven Gray, consultant and author; Betty Hanna, IAHCSMM executive director; Larry Malcolmson, founder, MD Buyline; John Strong, retired hospital supply chain, distribution and GPO executive, and consultant; and Derwood Dunbar Jr., inaugural leader of MAGNET and HIGPA (now HSCA).

President instructs FDA to take action to reduce drug shortagesPresident Barack Obama signed an Executive Order directing the FDA to take action to reduce the number of prescription drug shortages which have nearly tripled in the last five years. The new order instructs the FDA to broaden reporting of potential drug shortages, expedite regulatory reviews that may help prevent shortages, and examine whether potential shortages have led to illegal price gouging. It does not give the President any new authority, but rather enhances steps already underway to monitor and prevent drug shortages. In addition, the administration added five new staffers to the FDA’s Drug Shortages Program and sent a letter to manufacturers reminding them to report the discontinuation of vital drugs.

CMS recognizes Joint Commission’s critical access hospital accreditationCMS announced in October that it is, once again, granting The Joint Commission deeming authority for the accreditation of critical access hospitals, effective November 21, 2011 through November 21, 2017. CMS’ notice of approval, which was published September 23, 2011 in the Federal Register, determined that The Joint Commission’s standard for critical access hospitals, which are defined as hospitals with no more than 25 acute care beds and an annual average length of stay per patient of 96 hours, meet or exceed standards established by the Medicare and Medicaid program. In addition, The Joint Commission has federal deeming authority for advanced diagnostic imaging, ambulatory surgery centers, clinical laboratories, durable medical equipment suppliers, home health, hospice, hospitals and psychiatric hospitals.

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