Group Purchasing Organizations Help Hospitals Cut Supply Chain Costs

Joining a group purchasing organization can help hospitals reduce supply costs while streamlining the procurement process, according to a whitepaper from Plano, Texas-based Community Hospital Corp.

For this reason, Community Hospital Corp. Consulting, the management and consulting arm of Community Hospital Corp., partnered with HealthTrust Purchasing Group in Brentwood, Tenn., to provide community-based hospitals with comprehensive supply chain management and access to HPG's portfolio.

Typically, smaller, independent hospitals do not have as much purchasing power and may receive less favorable pricing than their larger counterparts. According to the white paper, due to CHC Consulting and HPG's partnership, independent hospitals can access aggregated purchasing volume, which may lower costs.

CHC Consulting serves as a liaison between HPG and community-based hospitals with less than $25 million in annual material purchasing. According to the white paper, CHC-owned facilities and CHC Consulting clients have an annual spend of $126 million and expect to save $5.9 million annually by using HPG. This is because all CHC clients have access to the same pricing on medical and surgical supplies, pharmaceuticals and human resource services, according to the white paper.

More Articles on Hospital Supply Chain Management:

6 Best Practices to Improve Implantable Device Supply Chain Management
7 Risks of Not Integrating Supply Chain and Revenue Cycle
North American Healthcare Providers Save $2B in GHX Supply Chain

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