What would you think about paying 15% more for supplies than your peers for the exact same items? Or what about adding staff (and therefore administrative expenses) to negotiate contracts on your behalf, only to find out that your colleagues have someone negotiating for them – and doing it for free. Well, if you have failed to explore the benefits of group purchasing organizations (or GPOs) for your practice or stand-alone surgical center, it’s time to listen up.
In a word, it’s all about leverage. Group purchasing organizations aggregate purchasing volume and negotiate contracts on behalf of members, thereby lending a voice to smaller clients and balancing the power equation between vendors and buyers. Nearly 100% of hospitals in the US utilize GPOs, and many use more than one to help streamline their purchases. First established in the early 20th century, GPOs are nothing new, but their importance and their impact on the bottom line have grown over the last two decades as a direct resulting of shrinking reimbursements and skyrocketing medical costs.
In an on-going effort to provide reliable and useful cost saving solutions to members, HNA is highlighting the Group Purchasing Alliance or GPA. GPA has secured contracts that cater specifically to physicians and non-hospital facilities across the nation. Through these superb national contracts with manufacturers and distributors of healthcare supplies, office supplies, and medical technology providers GPA extends to doctors a 15% to 55% savings on most of the supplies and technology solutions they offer.
GPA offers benefits that will be music to your ears. Namely:
- No fee to join
- No minimum order requirements
- No annual dues
As with other group purchasing organizations, GPA utilizes the expertise of a panel of clinicians to establish their formulary (or basket of goods). They also assist in streamlining the purchasing process, by offering various mean of ordering (fax, call or web orders) and allowing practices to work with one or multiple distributors, depending on individual preference.
If experience with GPOs has eluded you up to this point, take a closer look. Over 600 GPOs exist, all with different benefits and options. And just because you’ve seen one, doesn’t mean you’ve seen them all. As a GPO member, you remain in control of the ultimate purchase decision. GPOs simply negotiate contracts for discounted medical supplies; they do not directly handle purchasing or supply chain management. However, in many cases, GPOs provide cost-avoidance savings to providers by helping to standardize and streamline their purchasing.
For more information about the Group Purchasing Alliance, visit www.GroupPurchasingAlliance.com
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