Studies continually emphasize the point that GPOs are a practical solution to counter the ever mounting cost of health care in America. HSCA will keep this page updated with the latest in third-party studies.
How Group Purchasing Organizations Reduce Healthcare Procurement Costs in a Highly Competitive Market
by Daniel O’Brien, Jon Leibowitz, and Russell Anello
This report, released in June 2017, affirmed that GPOs save money for healthcare providers, patients, and taxpayers; that GPOs promote competition in the market for procurement services; and that the current GPO funding model supports competition and lower costs.
Hospital Supply Chain Executives’ Perspectives on Group Purchasing: Results from a 2014 National Survey by Lawton Robert Burns, Ph.D., MBA, and Rada Yovovich
This report, released in October 2014, was prepared for the American Hospital Association (AHA) and The Association for Healthcare Resource and Materials Management (AHRMM) under an AHA/AHRMM Research Grant to the University of Pennsylvania.
GPOs: Helping to Increase Efficiency and Reduce Costs for Healthcare Providers and Suppliers by Applied Policy, LLC
This October 2014 report reviews data that was submitted by five major healthcare group purchasing organizations (GPOs) to the U.S. Government Accountability Office (GAO) to evaluate the contracting and business practices of GPOs and understand the value of GPOs to the U.S. health care system.
A 2014 Update of Cost Savings and Marketplace Analysis of the Health Care Group Purchasing Industry by Dobson Davanzo & Associates, LLC
This report is an update to a May 2009 report detailing the value of group purchasing organizations (GPOs) to the U.S. health care system.
The Vital Role of Group Purchasing Organizations in Alleviating Drug Shortages in the United States, HSCA Publication with Avalere Health
The report found that healthcare group purchasing organizations (GPOs) play a significant role in helping hospitals, purchasing partners and suppliers alleviate the impact of prescription drug shortages in the United States.
Group Purchasing Organizations, Monopsony, and Antitrust Policy by Roger D. Blair and Christine Piette Durrance
Blair and Durrance find GPOs to be pro-competitive while also noting that the GPO funding mechanism may suggest conflicts, but these may well be more apparent than real.
Activities and Perspectives of the Office of the Inspector General in the U.S. Department of Health and Human Services Regarding Group Purchasing Organizations (GPOs) by Richard P. Kusserow and Thomas E. Hermann, Strategice Management Services, LLC
An Analysis of Group Purchasing Organizations’ Contracting Practices Under the Antitrust Laws: Myth and Reality by Robert E. Bloch, Scott P. Perlman, and Jay S. Brown, Mayer, Brown, Rowe & Maw
The Impact of Group Purchasing Organizations on Healthcare-Product Supply Chains by Joice Hu, Leroy B. Schwarz, and Nelson A. Uhan, Krannert School of Management, Purdue University
A 2011 study that utilized game theory to analyze the impact of GPOs on the healthcare supply chain. Findings include: GPOs decrease overall purchasing costs for hospitals and providers, particularly for small providers; if GPOs were removed from the healthcare marketplace, hospitals would pay higher total purchasing costs; GPO contract administrative fees have no effect on the total purchasing costs of any provider, large or small; competition among GPOs in the same market for hospital business likely lowers per-unit prices for hospitals; and many large hospitals are part-owner of their GPO and experience lower per-unit and total purchasing costs as a result.
Group Purchasing Organizations (GPOs) Work to Maintain Access to Product Supply for America’s Health Care Providers, research and compilation of findings by Avalere Health
GPOs play a vital role in assisting hospitals to limit the impact of drug shortages and to ensure the least possible disruption to patient care by prompt and safe migration to alternative products, where possible. This study analyzes the role of GPOS; specifically, GPOs track data on drug shortages to stay abreast of the topic, strategize with their members when there is a potential for drug supply disruption, and communicate with manufacturers and distributors to foresee any problems. Moreover, GPOs help their members lessen the exposure to drug shortages by evaluating manufacturer’s reliability when sourcing and awarding contracts and in assisting them to establish best practice purchasing procedures.
Cost Savings and a Marketplace Analysis of the Health Care Group Purchasing Industry by David Goldenberg and Guy King
A 2009 study of National Health Expenditure Data by Dr. David Goldenberg and Roland King shows that in 2008 GPOs saved the nation up to $64 billion; Medicare & Medicaid saved up to $30 billion.
The Value of Group Purchasing: Meeting the Needs for Strategic Savings by Eugene Schneller
An April 2009 study of over 420 hospitals by Dr. Eugene S. Schneller, professor, Arizona State University and principal, Health Care Sector Advances, Inc. finds that GPOs save the U.S. health care industry $36 billion dollars annually. Click here to listen to an audio clip of the complete launch event.
Hospital purchasing alliances: Utilization, services, and performance by Lawton R. Burns and J. Andrew Lee
This study represents the first national survey of hospital purchasing alliances. The survey analyzes alliance utilization, services, and performance from the perspective of the hospital executive in charge of materials management. This study extends research on pooling alliances, develops national benchmark statistics,
and answers important issues raised recently about pooling alliances.
Group Purchasing Organization: Contracting Practices and Antitrust Law by William Kolasky
This paper is a response to the testimony of David Balto entitled The Effects of Regulatory Neglect on Health Care Consumers in the Competition in the Healthcare Marketplace hearing before the Consumer Protection, Product Safety and Insurance Subcommittee of the Senate Committee on Commerce, Science, and Transportation that took place July 16, 2009.
Group Purchasing Organizations: Services Provided to Customers and Initiatives Regarding Their Business Practices, United States Government Accountability Office (GAO), Report to the Ranking Member, Committee on Finance, U.S. Senate
In 2010, the GAO was asked to describe GPO services and funding, as well as the impact of GPOs’ codes of conduct and other initiatives regarding their business practices. In this report the GAO describes (1) the types of services that GPOs provide and how the GPOs fund these services, (2) initiatives that GPOs have implemented since 2002 to address the questions that had been raised about their business practices, and (3) the reported impact of the GPOs’ codes of conduct and other initiatives.