Traditional healthcare GPOs

The healthcare supply chain is made up of many different moving parts that all depend on one another to ensure the success of the overall healthcare industry. One integral component of the healthcare sector is the role of traditional healthcare group purchasing organizations (GPOs). Traditional healthcare GPOs are the sourcing and contracting partners to virtually all of America’s 7,000+ hospitals and a vast majority of the 68,000+ long-term care facilities, surgery centers, clinics, and other healthcare providers.

A 2018 analysis found that GPOs save the U.S. healthcare system $34.1 billion annually and up to $456.6 billion over ten years, with Medicare savings of up to $116.3 billion and Medicaid savings of up to $90.2 billion over the same period. The value and services that GPOs provide allow healthcare providers and physicians to focus on their core mission: delivering first-class patient care. Healthcare GPOs continue to effectively support the healthcare sector by identifying best practices, lowering costs, and encouraging cross-industry collaboration.

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