GPOs: Important Factors in the US Health Care Equation

A group purchasing organization is indeed one of the most important factors in theUShealth care equation. It is extremely important to know that GPOs actually do not buy medical devices, but these organizations only negotiate some contracts for the benefit of the hospitals, nursing homes or private practices.

The GPOs negotiate these contracts with vendors, suppliers and manufacturers of medical devices, but also with distributors. A purchasing contract is set up, but it is the hospital which will take the ultimate decision upon which type of device to purchase. GPOs can make suggestions regarding the volume of such devices needed and regarding the type of devices which would work best, but it is completely up to the health facility what and how much to purchase from each item/ device.

It’s also important to know that there are quite many hospitals out there and health care providers who choose to make these purchases on their own without turning for help to these GPOs. One of the main roles of a group purchasing organization is to help the hospital/ healthcare facility/ nursing home/ health agency saving money and maximizing its efficiency as an institution.

GPOs negotiate discounts with vendors and suppliers, and thus they are able to bring hospitals savings of even up to 15% or sometimes more. Certainly this greatly depends on the volume of devices purchased, their provenience and other such factors. The organizations help the entireUShealth industry save tens of millions of dollars every year, and this is an extremely important factor from an efficiency point of view.

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