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5 ways a GPO can help you save

June 27, 2014
From the June 2014 issue of HealthCare Business News magazine

  • Cost reduction through standardization — your GPO can provide data that, with a quick review, can allow you to find numerous products that are similar (both in design and use) and vary in price. In some instances, the same product by different distributors can be found at markedly different costs.

  • Collection and use of supply chain data — with the increase in transparency we have been able to provide excellent benchmarks and goals for organizations to use to reduce extreme variability in pricing in both commodities and implants. In many situations, products that are similar, but manufactured by different vendors, can be reviewed and evaluated by the users and declared comparable. The best price option then becomes a key differentiator. Comparables and equivalencies allow us to look at economics (price and cost) data, provide high quality care for the patient and do it by providing great value to the patient and the institution. Expanding on this formula, your GPO can do this for you in a wide variety of areas beyond pharmacy, including lab, DI, and med surg and non-clinical areas such as facilities, foodservice, telecom and IT.

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In conclusion, all major GPOs have evolved to become excellent sources of information — evaluating data, reducing duplication, determining comparable products — all in an effort to support our customers and their goal of reducing costs and delivering high quality health care. Always key to this discussion is not to overlook some of the easy and very effective tools supply chain leaders have to help make a difference. But whether complex or easy, these resources and services continue to answer the question of what value do GPOs bring me and my organization?

About the author: As president and CEO since May 2007, Todd Ebert oversees the strategic vision and operational direction of Amerinet Inc., a national healthcare solutions organization dedicated to providing practical solutions to help members reduce healthcare costs and improve health care quality.

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