Since the first group purchasing organization was established in 1910 by the Hospital Bureau of New York, GPOs have been pioneering healthcare cost reduction strategies for several decades. Finding power in numbers, GPOs leverage contracts based on members' purchasing ability to negotiate contracts and help providers save costs on purchased goods and services.
However, GPOs have played a controversial role in the healthcare industry. Although they can achieve savings for their member organizations, they often frustrate medical device companies who want to work directly with buyers. Additionally, several GPOs have been involved with lawsuits scrutinizing antitrust issues.
Read the full report on Becker's Hospital Review.
However, GPOs have played a controversial role in the healthcare industry. Although they can achieve savings for their member organizations, they often frustrate medical device companies who want to work directly with buyers. Additionally, several GPOs have been involved with lawsuits scrutinizing antitrust issues.
Read the full report on Becker's Hospital Review.