HGPII’s Report: Medical GPOs Focusing on Cost, Innovation in Healthcare Supply Chains

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The Healthcare Group Purchasing Industry Initiative (HGPII)’s 2019 annual Public Accountability Report released Thursday found that healthcare's group purchasing organizations (GPOs) continue to advance business practices that promote growth, transparency and innovation. The annual report also explored the sector's ethics.

GPOs try to improve the efficiency of the healthcare supply chain and lower costs. They help source and negotiate prices for devices, pharmaceuticals and other products for healthcare vendors, including hospitals, primary care practices and nursing homes.

“The demand for affordable and quality healthcare is on top of everyone’s mind, so creating an urgent need for cost control in every facet of the healthcare system is critical,” Phil English, HGPII’s national coordinator, said in a press release.

The 13th annual report is based on a survey of nine major GPO organizations that founded the HGPII in 2005. The yearlong research project combined the use of a detailed public questionnaire, management interviews, site visits and an annual mandatory best practices forum attended by industry leaders, including compliance officers whose interests around all of healthcare's emerging standards are notable.

Among other findings, the report highlights the following best practice-related advances:

GPOs Advance New Technology and Innovation: HGPII members host and attend trade and vendor expos and other events that allow them to engage directly with healthcare suppliers. HGPII members also closely review recommendations for products that they receive from their members.

GPOs Promote Supplier Diversity: The largest GPOs are directly engaged in an array of educational initiatives and business strategies designed to create opportunities for vendors who are underrepresented in the industry. Some GPOs have contracts with a growing number of diverse suppliers, and others have collaborated with leaders in this area to take advantage of programs and networks established by peers.

GPOs Support the Use of Environmentally Preferred Products and Services: GPOs are driving demand for environmentally preferred products and services in the healthcare supply chain. While the demand for these products and services varies regionally, it is clear that there is growing interest in understanding and validating products and services that meet the defining criteria.

HGPII’s founding member GPOs are Children’s Hospital Association; Acurity, formerly Greater New York Hospital Association; HealthTrust Purchasing Group; Health Procurement Solutions; Intalere; Premier Inc.; TPC; Vizient; and Yankee Alliance.

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