Until Premier filed its IPO last year, MedAssets was the only publicly traded GPO and remains one of the largest GPOs in the U.S. How hospitals purchase medical supplies and drugs has fast become a key area of focus for administrators who are looking to rein in supply chain spending to counter cuts in reimbursement and lower patient volume.
MedAssets said the spend and clinical-resource-management business, which houses its GPO, saw its overall revenue fall 0.6% to $105.9 million. Cash inflow in that sector rose because of an increase in advisory and consulting fees, but that was offset by a 0.6% decline in net administrative fees to $70 million. Those fees are a percentage of the contracts GPOs negotiate with medical-device manufacturers and suppliers on behalf of their hospital members. Company executives told investors that the decline in net administrative fees is expected to be short-term.
Net income rose nearly 30% to $6.6 million.
MedAssets lowered its outlook for the year and said it anticipates up to 3.4% growth in the spend and clinical-resource-management business and up to 4.3% growth in total revenue.
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