Why Join A GPO?

What is a GPO?

A healthcare Group Purchasing Organization (GPO) assists in promoting quality healthcare relief and assists diverse providers in effectively managing expenses. A GPO combines the purchasing volume of its members for various goods and services. Also, the GPO develops contracts, with its suppliers, allowing members to purchase at group prices and terms if they choose.

What are the benefits of a GPO?

Since GPOs represent thousands of physician groups, they are able to offer economies of scale to its customers. By aggregating the purchasing power of many organizations, GPOs help balance the negotiating equation between purchasers and vendors.

GPOs produce substantial savings by removing costs from across sales and supply chains, without having to limit our purchases to the cheapest products. GPO customers receive financial benefits through up-front pricing discounts, patronage dividends and distributions, and reduced administrative costs.

In addition, GPOs provide valuable cost-avoidance savings to organizations by helping them standardize and streamline their purchasing. This allows the practice to reduce staff needed to facilitate the negotiation of future contracts.

Becoming a member of a GPO, like PPA, includes benefits such as the following:

  • Seamless Purchasing Efforts – Purchasing medical equipment and services is much more efficient once you become a member. The relationships formed by PPA make the purchasing process much easier for a medical practice.
  • Buying Power – The more members in a GPO, the more buying power and leverage you will have when making purchases for your practice. PPA can negotiate better deals on your behalf by leveraging the buying power of its members.