New York Times: Accusation of Conflicts at a Supplier to Hospitals

The New York Times today published a new article in its ongoing MEDICINE’S MIDDLEMEN series examining hospital purchasing contracts.

In a front page Business section story, the Times reported that a former employee of Novation, a major buying group for hospitals, claims she was fired after complaining about the company’s business practices. In a sealed deposition obtained by the Times, the former employee alleged that Novation pressured employees to steer millions of dollars in business to a former official of the buying group’s predecessor.

The deposition is part of a lawsuit filed in a Texas federal court by Retractable Technologies accusing Novation and Premier Inc. of effectively locking it out of the hospital market. Novation and Premier negotiate contracts for about two-thirds of the nation’s hospitals.

You may view the entire article online here.