A group purchasing organization (GPO) helps healthcare provider members — such as hospitals, physician practices, and nursing homes — save money by combining their purchasing volume and buying power to negotiate discounts with manufacturers, distributors, and other vendors. There are a small number of national GPOs in the United States, and 100+ regional and specialized groups.
Virtually every U.S. hospital is represented by one or more GPOs. GPOs also represent nursing homes, physician practices, and other types of providers. While the goal of reducing costs is clear cut, GPO contracting can be very complex. In this course, we’ll explore fundamentals and complexities of group purchasing and contracting.
After completing this course, you’ll understand:
- What drives providers to combine their purchasing power
- How contracting process complexity leads to administration system complexity
- Key features of GPOs and healthcare pricing contracts
- How GPOs get paid
- How distributors support contracts and help providers get the right price
- What can go wrong with contracting processes
- Why vendors choose to participate in the GPO contracting process