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Originally Posted On: https://managerteams.com/5-undeniable-benefits-of-working-with-a-gpo-in-healthcare/
With the cost of healthcare rising each year in the U.S. by about 4 percent or $11,582 per person, finding ways to cut back on costs is important. Co-pays, medication, and necessary medical equipment can make for a large bill at the end of the day. You don’t want your patients to have to choose between health care for themselves or a family member, just because of money.
Working with a GPO in healthcare is one way to help alleviate some of the costs, not only for your clinic but for your patients as well. It’s also not the only benefit if you look at the GPO trends in healthcare.
Unsure if a GPO is right for you and your medical practice? Continue reading to find out about the 5 top benefits that the role of a GPO in healthcare plays.
Table of Contents
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1. They Do the Work for You
If you are wondering what is a GPO in healthcare, it stands for Group Purchasing Organization. It’s a system formed to help those in the medical field lower costs, save money, and negotiate deals with vendors and medical suppliers. They use group purchasing to acquire these discounts, in essence, buying in bulk.
Using a committee foundation, they determine which supplies may be needed by a clinic or a hospital. They negotiate with suppliers and distributors and form contracts that can be used by anyone who is a member of their GPO.
GPO’s do not purchase the equipment or supplies but leave that up to medical providers to make the final decision on what they will buy.
2. Bigger Is Better
The bigger the GPO, the more likely you are to benefit from savings, among other things. Having the largest GPO in healthcare making the contracts for you means greater access to vendors and suppliers.
Larger medical GPO entities have more clients, which also cuts back on administrative fees.
3. Lower Costs
Working to find the lowest price among vendors can be challenging in the medical field. There are thousands of suppliers. When working with a GPO in healthcare the costs go down by negotiating only one price among all the distributors.
When purchasing from a vendor in mass, they also are able to effectively offer their product at a lower rate. Knowing that the GPO has a contract with them, they are confident in the product being purchased.
4. Consistent Pricing
Dealing with a contract where the pricing has already been negotiated allows you to know what prices you will be paying, year-round. This allows you to create a workable budget that won’t change throughout the entire year.
5. Higher Efficiency
In addition to medical equipment, GPO’s can negotiate for data analysis and software technology that can improve the efficiency of your office. Marketing and best practice solutions will help your customer service to improve.
Join the GPO in Healthcare That Best Serves You
Becoming acquainted with how a GPO in healthcare can benefit you is just one of the things you need to do. Figuring out which GPO to join and then following through will help you provide better care for your patients, both physically and in the wallet.
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