Ethics & Compliance
Consorta is an alliance of health care organizations committed to
achieving economies of scale in resource management and group
purchasing of goods and services.
A fundamental part of our vision is to enhance the missions of our
shareholders. We do this by developing group purchasing agreements
that help shareholders meet their cost management and quality
improvement objectives.
Our Board of Directors and management team realize that
commitment to Consorta's group purchasing program is essential to
our goal of providing value to shareholders and their participating
organizations.
Our Commitment Philosophy
Commitment to Consorta's group purchasing program is essential to
our goal of providing value to Shareholders and their participating
organizations. The Consorta Shareholder Patron Agreement establishes
each shareholder's commitment to use Consorta as its sole group
purchasing organization.
- All Shareholders strive to achieve full compliance. Consorta
agreements generally have an 85% commitment level. When
participants have existing contracts that are not Consorta
agreements, they may use those contracts until they expire.
- Participants will not use Consorta contracts as leverage.
Any instances of participants using contracts to achieve better
pricing or develop their own agreements will be resolved with
the cooperation of the Shareholder or participant's corporate
office.
- Participants will not enter into independent negotiation for
products covered by a Consorta agreement. If the product
category has not been addressed by the Contracts and Programs
Committee or does not appear on Consorta's contracting plan for
at least 18 months, participants may enter into independent
agreements.
- Consorta monitors shareholder purchase activities. We ensure
that compliance is measured and that participants receive
feedback about their progress.
Our Compliance Philosophy
We believe that sole source contracting combined with high
compliance delivers the greatest economic value. However, dual and
multi-source contracts may sometimes be appropriate.
Shareholders take responsibility for compliance.
The Consorta Shareholder Patron Agreement establishes each
shareholder's commitment to use Consorta as its sole group
purchasing organization.
Consorta monitors shareholder purchase activities.
We ensure that compliance is measured and that participants
receive feedback about their progress.
New shareholders will share our commitment to compliance.
New shareholders and participants are expected to transition to
Consorta agreements within six months.
Compliance Measures and Administration
We monitor every contract. Each participant's
performance is reviewed contract by contract. Business partners are
responsible for reporting total contracted purchases for Consorta
shareholders and participants.
All instances of non-compliance will be resolved.
When a business partner notifies us of a specific,
substantiated instance of non-compliance, we will contact the
shareholder and assist in implementation of the agreement or other
resolution of the issue.
While Consorta's compliance program is overseen by the Board of
Directors, administration of our compliance program is the
responsibility of the Contracts and Programs Committee. The
committee reviews and facilitates the resolution of non-compliance
issues that cannot be resolved by Consorta and business partners.
Expectations of Shareholders
All shareholders strive to achieve full compliance.
We define full compliance as using all Consorta agreements
at their required commitment levels. Consorta agreements generally
have an 85 percent commitment level. When participants have existing
contracts that are not Consorta agreements, they may use those
contracts until they expire.
Participants will not use Consorta contracts as leverage.
Any instances of participants using contracts to achieve better
pricing or develop their own agreements will be resolved with the
cooperation of the shareholder or participant's corporate office.
Participants will not enter into independent negotiations
for products covered by a Consorta agreement. If the
product category has not been addressed by the Contracts and
Programs Committee or does not appear on Consorta's contracting plan
for at least 18 months, participants may enter into independent
agreements.
Expectations of Business Partners
Business partners are expected to meet Consorta's requirements.
Our business partners expect that Consorta and our participants will
meet contract commitments. We, in turn, have expectations of our
business partners, which include:
- Effective national account programs.
- Electronic reporting of sales and other data.
- Accurate cross-referencing information.
- Assistance in resolving compliance issues.
- Support of our Board's decisions on compliance issues.
- Timely payment of all rebates, incentives and fees due
Consorta or our participants.
In the spirit of good relations with our business partners, we
make every effort to support and implement our agreements. We also
expect business partners to honor the entire Consorta contract
portfolio by respecting the awards we make to other business
partners.