decisionhealth Newsletters, Part B News - 2009 Issue 10 (October)
Group purchasing organization could help your practice save thousands
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Article Overview
This article explains how health care group purchasing organizations (GPOs) work, why they may appeal to physician practices, and what kinds of cost-saving arrangements they may offer. It is aimed at practice leaders, administrators, and others evaluating vendor purchasing options, membership costs, and the general value of joining a GPO. The piece also touches on differences among GPOs, common membership considerations, and the growing focus on smaller practices.
Why This Topic Matters
For practices trying to control overhead, GPOs can affect spending on everyday purchases and vendor services. Understanding the general structure and tradeoffs can help decision-makers evaluate whether a GPO aligns with their practice size, purchasing volume, and operational needs.
What You Will Learn
- How health care group purchasing organizations are structured at a high level
- What types of purchases and services may be included in GPO offerings
- Why practices compare membership costs and potential savings before joining
- How GPO features and incentives may differ among vendors and organizations
- Why small and medium-sized practices are a target audience for GPO outreach
Who Should Read This
- Physician practice administrators
- Medical office managers
- Small and medium-sized practice owners
- Healthcare finance and purchasing staff
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