Group purchasing organizations save the healthcare industry up to $34.1 billion annually, according to a report released June 4 by the Healthcare Supply Chain Association.
HSCA is a trade group that represents 13 GPOs. The fourth annual report is based on existing academic research and a survey of association members.
Four takeaways:
1. GPOs are projected to save the healthcare industry $456.6 billion between 2017 and 2026.
2. Healthcare providers that use GPOs save an average of 13.1 percent on supply-related purchasing costs compared to those that don't.
3. GPOs helped providers transition to virtual care during the pandemic. Before March 2020, fewer than 2 percent of providers were using virtual health technologies, according to one member GPO's analysis of data from more than 35,000 healthcare providers within 80 specialties. By the end of April 2020, this figure jumped to more than 70 percent.
4. GPOs have an immense amount of data that can improve supply chain visibility and tracking. For example, one GPO said it has more than 100 billion data points on clinical, financial and operational healthcare performance. This includes data on 45 percent of U.S. hospital discharges and more than 30,000 clinicians in medical groups.
To view the full report, click here.