In the news: Group purchasing organizations can save healthcare industry billions

May 6, 2009
Credentialing Resource Center Digest - Volume 10 Issue 18

Group purchasing organizations (GPO) have the potential to save the United States health care industry $36 billion dollars annually, says a study by Health Care Sector Advances, Inc., The Value of Group Purchasing - 2009: Meeting the Need for Strategic Savings.

The study surveyed 28 hospital systems representing 429 hospitals, and the results are clear. GPOs:

  • Ensure efficient contracting
  • Secure price reductions as a result of consolidating volumes of materials to influence supplier price
  • Contribute to a sustained level of high quality suppliers in the marketplace
  • Positively influence hospital performance in cost, safety and clinical outcomes
  • Reduce human resources expenses by about $2 billion per year