When a healthcare facility joins a group purchasing organization (GPO), its cost savings can be up to 18 percent of the total supply chain costs, according to an article on the Healthcare Finance website.
This can result in savings across the entire healthcare system, according to the Healthcare Supply Chain Association.
GPOs can provide healthcare providers them with an effective analytics framework as well as purchasing power.
According to the Healthcare Supply Chain Association's new report, one hospital realized $3 million in annual savings with a GPO. The GPO's analytics found that the facility's pricing model was cost efficient.
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