Savings and Efficiencies by Aggregating Purchasing Volume – Group Purchasing Organization (GPO)

2019-02-28T18:21:45+00:00GPO, News|

Leveraging Healthcare GPO Relationships A group purchasing organization (GPO) is a collection of various entities that assists healthcare providers, such as hospitals, private practices, and nursing homes, reach cost savings and efficiencies by aggregating purchasing volume. By applying those advantages, GPOs can negotiate discounts with vendors, distributors, and other manufacturers. Healthcare providers use GPOs to obtain the best products at optimal pricing. Overall, nearly two-thirds of purchases that hospitals make are through GPO contracts. Benefits of GPOs Because GPOs represent multiple healthcare facilities, they provide large-scale economic savings to the healthcare supply chain. GPOs balance the negotiation technique between vendors and [...]