Tag Archives: group purchasing models

$30 million back on hospital books as part of new purchasing model

At yesterday’s Central East LHIN The Scarborough Hospital (TSH) was asked to treat $2 million it thought it had coming back from Plexxus as “bad debt.”

Plexxus is a not-for-profit owned by 11 GTA hospitals, including TSH. A group-purchasing company, it uses the size of the 11 hospitals to negotiate better pricing on goods and services used by these hospitals. Many of the people who do purchasing for Plexxus are still employed by the 11 hospitals, some of them members of OPSEU.

As one of the 11, the question is, how could TSH write off bad debt essentially owed to itself, especially when the decisions on how this money got stranded was made by the group of hospitals?

David Yundt, President and CEO of Plexxus says he prefers not to call it bad debt, which suggests Plexxus is not paying back what it owes to its member hospitals.

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