Time to get in with the in-crowd? A new study looking at the performance of group purchasing organizations (GPOs) shows the organizations can save billions in annual health care and related costs savings. And let’s be honest: Who doesn’t want to save every dollar they can?
GPOs — entities that achieve health care cost savings by aggregating their health care buying volume and then using that leverage to negotiate discounts with manufacturers, distributors and other vendors — have the potential to save the health care system some $36 billion, according to a study of 429 hospitals and over 3 million hospital admissions by Dr. Eugene S. Schneller, a principal for Health Care Sector Advances, Inc. and professor at the Arizona State University School of Health Management and Policy.
