February 13, 2024 – Healthcare suppliers initially established GPOs within the early twentieth century as an environment friendly means to pool buying quantity, stimulate competitors amongst suppliers, and scale back healthcare prices. Right now, conventional healthcare GPOs function buying and contracting companions for hospitals, long-term care amenities, surgical procedure facilities, clinics and different healthcare suppliers throughout the nation. GPOs safe high-quality medical merchandise at honest costs for the advantage of sufferers, healthcare suppliers, Medicare, Medicaid and taxpayers. Each impartial and industry-funded research affirm the effectiveness and super worth of GPOs, discovering that GPOs ship annual value financial savings of 12-18%.

Via their complete buying and contracting course of, GPOs allow smaller suppliers to acquire crucial provides on the similar worth as massive suppliers, whereas permitting all healthcare suppliers to give attention to their core mission: offering first-class affected person care.

GPOs take a complete strategy to buying and contracting, taking into consideration not solely the aggressive worth provided, but in addition the standard, reliability and stability of the provision. The GPO enterprise mannequin is voluntary, versatile and clinically pushed. GPOs work intently with affiliated hospitals and healthcare suppliers to develop buying insurance policies and make choices about awarding contracts. GPOs acknowledge that market circumstances are altering, and as they do, they work with suppliers to regulate contracts. GPOs work arduous to make sure that member hospitals and healthcare suppliers can choose the merchandise they should most successfully care for his or her communities and sufferers and to supply medical sources inside their community of healthcare suppliers.

Learn extra within the newest difficulty of The Journal of Healthcare Contracting.