Benefits of partnering with a GPO
Having the right supplies at the right time is essential for any business, but it's particularly important for health care institutions. Imagine not having enough gloves, disposable needles or bandages - items that are necessary for routine doctor's visits as well as hospital care. As patient visits fluctuate in number and frequency, it's difficult to predict how much inventory is required at a given time, and supplies can often become expensive for busy health leaders.
Partnering with a group purchasing organization can yield significant benefits and empower optimal health operations. Let's take a look at some of the biggest benefits of teaming up with a GPO:
1. Lower costs
Businesses always look for ways to lower their overall expenses, but it's not good to cut corners where health is concerned. Rather than settling for low-grade supplies, a GPO can help health organizations obtain discounts and rebates from its vendors. A study by the Healthcare Supply Chain Association revealed that GPOs yielded savings between 10 and 18 percent through reduced supplier prices and transaction costs. Suppliers also benefit through increased market share and deeper relationships with buyers, giving them incentive to provide good deals and quality service. The reduced costs offered by a GPO will enable sustainable spending, better inventory management and first-class patient care.
Partnering with a GPO can lower your expenses.
2. Better access to necessary supplies
With the rising costs of supplies and the quick advancement of technology, it's hard for health organizations to keep up and provision appropriately. For hospitals in particular, it's especially important to have critical medication on hand to manage patient symptoms and facilitate the recovery process. However, a recent Vizient study predicted that prescription drug prices will increase by 7.61 percent next year. Rising drug prices are becoming a top concern for health care executives, making it essential to align with a GPO that can negotiate cost-effective contracts and offer necessary medications at lower expense. This will combat persistent drug shortages while also cutting costs.
"A GPO can streamline processes and help improve your efficiency."
3. Streamlined business processes
Health care administrators and leading doctors are busy individuals, and inventory management can take up a significant amount of time. Rather than negotiating supplier contracts and painstakingly tracking inventory on your own, partner with a GPO that will streamline these processes and improve your efficiency. According to Springfield News-Leader contributor Jenifer L. Skiba, Ph.D., taking a strategic partnership approach with your GPO can increase the satisfaction within the relationship and can positively impact overall efficiency and effectiveness. While this method will take work and commitment, your GPO can positively guide your long-term plans and establish a mutually beneficial lasting relationship. Research GPOs that have a history and record of success in serving similar institutions.
GPOs should work for you to connect you with the best suppliers and prices to operate effectively. Partnering with a GPO can yield significant benefits for health care providers and enable medical professionals to do their jobs more effectively. To learn more about what a capable GPO partner can do for your health care institution, contact MediGroup today.