What is a GPO agreement?
What is a GPO agreement?
A GPO aggregates the purchasing volume of its members for various goods and services and develops contracts with suppliers through which members may buy at group price and terms if they choose to. GPOs typically provide contracted discounts on medical supplies, nutrition, pharmacy and laboratory.
What does GPO mean in purchasing?
group purchasing organization
A group purchasing organization (GPO) is an entity that helps healthcare providers — such as hospitals, nursing homes and home health agencies — realize savings and efficiencies by aggregating purchasing volume and using that leverage to negotiate discounts with manufacturers, distributors and other vendors.
What is Source1?
Source1 is a leading data and technology company for hospitality procurement that provides innovative procurement-based solutions, supply chain management options, and strategic supply chain management services to operators within the lodging/hospitality, college/university, casino, and fairs/festivals segments.
What is Group procurement?
A procurement group is a team of individuals within an organization or company vested with the authority and responsibility to procure or obtain a given product or series of products.
How does GPO pricing work?
Healthcare GPOs are normally funded by administrative fees paid by vendors. Usually based on the price of whatever items are purchased, the fee is paid when a GPO member buys through a GPO contract. On average, the contract administrative fee for healthcare GPOs ranges from 1.22% to 2.25%.
How many GPOs are there?
GPO market There are approximately 600 active GPOs serving healthcare providers across the country.
How do you set up a group purchasing organization?
Know the Selling Points
- Review the advantages of a group purchasing organization before contacting potential members.
- Compile a list of vendor types you can include in your vendor partners.
- Explain how the group will be funded.
- Set up group staffing.
- Select an office location for ordering.
What are the benefits of group purchasing organization?
8 Benefits of Joining a Group Purchasing Organization
- Item Level Savings.
- Free Membership.
- Direct Relationship with Suppliers.
- Category Management / On-going Support.
- Networking.
- Lower Purchasing Risk and Quality Service.
- Savings Beyond Price.
- Varying Services.
