The So-Called "Safe Harbor" Law–Healthcare’s Dirty Little Secret

For decades, the healthcare industry has been a pawn in a dangerous and unethical game of “pay-to-play”. It’s the dirty little secret behind the outrageous cost of medications and the shortages of many drug and medical supplies.

Decades ago, Group Purchasing Organizations (GPOs) and Pharmacy Benefits Managers (PBMs) were introduced to streamline purchasing of drugs and medical supplies for hospitals and insurance companies.

Unfortunately, a law was passed that allows these medical market “middlemen” to accept kickback payments from drug and medical supply companies in exchange for exclusive sales contracts! It created a government-sanctioned system of racketeering that would be illegal in any other industry.

The middlemen have increasingly taken advantage of the system and the unethical and dangerous law that allows it. They demand huge “fees” from suppliers in order to award them lucrative contracts for their products.

As those kickback payments have escalated, suppliers have been forced to steadily increase the prices of their products — And those increased prices are passed directly on to patients.

Companies that can’t afford to pay the kickbacks are forced out of the market and frequently close their doors, leading to vast shortages of medical supplies and life-saving drugs.

The middlemen are getting richer and richer while Americans are being crushed by the ever-rising costs and drug shortages that result from this government-sanctioned racketeering.

Here’s the good news – A group of caring doctors, policy makers and community leaders have identified the simple solution that will save billions of dollars for Americans suffering from astronomical drug prices and drug shortages: