Group Purchasing Organizations (GPOs) are entities that save healthcare providers money by leveraging aggregated membership purchasing volume to negotiate discounts with manufacturers, distributors, and vendors. At Intalere, we typically can save our members 10-15% on their purchasing costs.
How Does a GPO Work?
- GPOs are membership-based and thrive in the healthcare industry because of the sheer number of companies that occupy the space. This means that your healthcare organization becomes a part of our group of healthcare companies that join forces.
- As a group, your combined spend increases collective buying power and creates leverage. That leverage is what motivates suppliers to offer discounts to the GPO.
- GPOs do not purchase any products. Instead, we negotiate contracts with healthcare manufacturers, distributors, vendors, and other suppliers based on the products and services that our members need.
- After a group purchasing contract is created, you decide which product is most appropriate for your needs and make the purchase. As a GPO member, you then benefit from significant cost savings for your purchases.
Why Work with a GPO?
Partner Relationships with Suppliers
We have partner-based relationships with healthcare suppliers and work to get our GPO members a low price but also focus on the total value of the contract. Properly managing supplier contracts requires an extensive time investment, and when you work with Intalere, your organization no longer has to deal with such a hassle. Our team reviews and audits price files and ensures that the terms of our group contracts are being followed.
Better Pricing and Contract Terms
By sourcing agreements with the right healthcare suppliers, Intalere can provide you with better pricing and contract terms than your healthcare company could get on its own. Suppliers like to work with GPOs because it reduces the costs associated with acquiring new customers, that’s why they are able to offer their best prices to GPO members.
As our group of members continues to increase, so does our collective buying power. This means that we are constantly monitoring changing buying patterns in the market and looking for new ways to enhance agreements and supplier performance. We continuously negotiate our group contracts with suppliers to gain even deeper discounts and improved terms and conditions for our GPO members.
How Else Can GPOs Help Me?
In addition to helping our members immediately experience significant cost savings on items they use every day, we work with them to:
- Standardize and streamline purchasing.
- Reassign staff focused on purchasing to care of patients.
- Identify and implement performance solutions designed to improve clinical, operational and financial health.
- Provide one-on-one Advisory Solutions.
- Establish best practices and enable peer networking.
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Medical Purchasing Partner
Intalere provides healthcare providers with the leverage they need to save on purchasing costs. Take advantage of our GPO benefits and receive the best healthcare purchasing solutions possible!
Become an Intalere member today.
Read various GPO studies or about the positive difference Intalere is making in the healthcare industry.
Healthcare Supply Chain Association (HSCA) Annual Value Report 2019
This HSCA Annual Value Report, released in March 2020, confirms what hospitals, healthcare providers, suppliers and policymakers see every day--GPOs support emergency response, reduce costs, enhance quality, increase competition and drive transparency throughout the healthcare system.
Access this report.
A Qualitative Overview of the Expanding Value Proposition of Healthcare Group Purchasing Organizations | Dobson DaVanzo & Associates, LLC
This study, released in October 2019, provides a real-time overview of the emerging trends in the GPO value proposition and tangible examples of the expanded roles GPOs seek to play as they move toward being trusted value-enhancing partners for their healthcare provider members.
Access this report.
Group Purchasing Organizations: How GPOs Reduce Healthcare Costs and Why Changing Their Funding Mechanism Would Raise Costs—A Legal and Economic Analysis | Dan O’Brien, Jon Leibowitz, and Russell Anello
This report, released in July 2017, was published by the Healthcare Supply Chain Association (HSCA) and affirmed that GPOs save money for healthcare providers, patients and taxpayers; that GPOs promote competition in the market for procurement services; and that the current GPO funding model supports competition and lowers costs.
Access this report.