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Corporate Compliance

Enacted in 1987, the Medicare and Medicaid Patient Protection Act permits Group Purchasing Organizations to charge administrative fees to suppliers for providing services. In 1991, Health and Human Services instituted Safe Harbor regulations which allow GPOs to provide goods or services to a health care provider as long as both of the two standards are met - (1) The GPO must have a written agreement with each health care provider, that provides for either of the following agreements: (a) The vendor from whom the health care provider will purchase goods or services will pay a fee to the GPO of 3 percent or less of the purchase price of the goods or services provided by that vendor, and (b) In the event the fee paid to the GPO is not fixed at 3 percent or less of the purchase price of the goods or services, the agreement specifies the exact percentage or amount of the fee. (2) The GPO must disclose in writing to the health care provider at least annually, the amount received from each vendor with respect to purchases made by or on behalf of the health care provider.

Synergy HealthCare Alliance, LLC is a Safe Harbor GPO. Annual reports are sent to all members detailing all purchases made through Synergy vendors with the corresponding percentage of fees collected from each vendor.