8 Key Findings on GPO Operations

The Washington, D.C.-based Healthcare Group Purchasing Industry Initiative has released its eighth annual report to the public that offers a comprehensive review of group purchasing industry best practices.

The report is a compilation of results from a "Public Accountability Questionnaire" distributed to HGPII member GPOs.

Here are eight key findings from the report.

1. Every HGPII member adhered to the six core principles of the HGPII charter: have a written code of conduct, train all employees to adhere to the code of conduct, work toward the goals of high quality healthcare and cost effectiveness, remain free of conflicts of interest, share each GPOs best practices and be accountable to the public.

2. Most HGPII members maintain administrative fees of 3 percent or less.

3. The average contract term among HGPII member organizations is between two and three years.

4. Most members do not use sole source contracts.

5. The survey indicated unrelated product bundling is not an occurrence in GPO contracts.

6. Some GPOs report encouraging vendors to promote products at technology expos and through online forums, and all GPOs report being open to contracting innovative technologies at any time.

7. Every GPO offers both internal and external grievance policies and procedures.

8. Each GPO reported actively increasing representation of minorities and increasing diversity, whether it be their own employees or minority-owned vendors.    

HGPII will present the report's findings to Capitol Hill staff members on Monday Dec. 16.

More Articles on Hospital Supply Chain:

Driving the Value Chain With Controlled Sourcing and Procurement
AHRMM Releases Whitepaper on Supply Chain Value Equation
Report: Healthcare GPOs Maintain Fair, Open Business Practices

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