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 20^th 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.