Healthcare-Product Supply Chains: Medical– Surgical Supplies, Pharmaceuticals, and Orthopedic Devices: Flows of Product, Information, and Dollars

Five organizations are to be found in the supply chains we examine: (1) manufacturers, (2) providers, (3) distributors,(4)pharmacybenefitsmanagers(PBMs),and(5)grouppurchasingorganizations(GPOs). Ÿeroleofeachorganizationisbrieflydescribedbelow.Table45.1identifiesexamplesofsomeofthe “majorplayers.”Itshouldbenotedthatalthoughtheirfunctionsaredistinct,theownershipofthese

organizations is sometimes the same. For example, a given company may be both a manufacturer and a distributor (e.g., Cardinal), or a provider and a GPO (e.g., Tenet, HCA).