Group purchasing organizations (GPOs) were created to help hospitals and other providers to pool their purchasing power to secure significant discounts on virtually all medical and other hospital supplies. Using the power of collaboration, hospitals, particularly small and rural, rely heavily on GPOs to provide economies of scale and labor savings, as well as providing other supply chain efficiencies, such as e-commerce systems, data analysis, benchmarking, and best practice sharing. Read Premier’s policy paper on GPOs.
Group purchases for prescription drugs get bad rap news article (10/13)
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