Why do hospitals use GPOs?
A group purchasing organization (GPO) is an entity that helps healthcare providers — such as hospitals, nursing homes and home health agencies — realize savings and efficiencies by aggregating purchasing volume and using that leverage to negotiate discounts with manufacturers, distributors and other vendors.
How many hospitals use GPOs?
There are approximately 600 active GPOs serving healthcare providers across the country. 2. Between 96 percent and 98 percent of hospitals nationwide belong to at least one GPO, according to a Healthcare Supply Chain Association report.
How much money does a GPO save the healthcare system?
One recent analysis found that GPOs save the healthcare system up to $55 billion annually, while a recent analysis from former FTC Chair Jon Leibowitz found that GPOs save providers an average of 10%-18% on product and services. Visit our Member Organizations page to learn more about HSCA’s members and what they do.
Who are the largest GPOs in the United States?
As of 2013, Alpharetta, Ga.-based MedAssets was the largest GPO by number of affiliate beds, at 510,940. 8. John Bardis founded MedAssets in 1999, serving as chairman, president and CEO since its creation. 9. MedAssets serves 180 health systems, 4,200 hospitals and 122,000 non-acute healthcare providers.
Where does the United States rank in public health care?
Here are the 10 countries viewed to have the most well-developed public health care systems. The U.S. ranks No. 22, falling seven spots on the list compared to 2020. Next: 10. Japan 10. Japan Learn more about Japan.
Why are GPOs controversial in the healthcare industry?
However, GPOs have played a controversial role in the healthcare industry. Although they can achieve savings for their member organizations, they often frustrate medical device companies who want to work directly with buyers.