March 4, 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 this moment, 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 good thing about sufferers, healthcare suppliers, Medicare, Medicaid and taxpayers. Each unbiased and industry-funded research verify the effectiveness and great worth of GPOs, discovering that GPOs ship annual price financial savings of 12-18%.^{1, 2}

Via their complete buying and contracting course of, GPOs allow smaller suppliers to acquire important 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.

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