Survey: Group purchasing organizations yielded up to $864B in healthcare savings over 10 years

In its annual report, the Healthcare Supply Chain Association found group purchasing organizations are benefiting the healthcare industry.

Here are four notes:

1. The survey found GPOs have saved the healthcare system between an estimated $392 billion and $864 billion over a 10-year period.

2. GPOs have offered $1.8 billion each year in human resource savings.

3. The survey also found GPOs offer flexibility in their use which works to bolster competition in the healthcare market and spur innovation.

4. Through GPOs, supply chain experts engages in communities of knowledge where they can share their best practices.

"Although cost-savings and delivering the best products at the best value remain central to the GPO core mission, hospitals are increasingly relying on their GPO partners for a broad range of services beyond cost-savings," said HSCA President and CEO Todd Ebert. "GPOs are expanding their offerings to meet evolving hospital and provider needs, including data analysis and benchmarking, market research, innovative technology integration, infection control, electronic product tracking and developing and facilitating communities of knowledge among healthcare providers and supply chain experts to share best practices."

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