A Group Purchasing Organization (GPO) is an entity that helps healthcare providers—like hospitals, clinics, and nursing homes—purchase supplies and services at reduced costs by pooling their purchasing power. GPOs negotiate with suppliers on behalf of their members to achieve bulk purchase discounts, which individual members might not be able to obtain on their own. Recently, GPOs have expanded their focus to include payment, procurement, and outcomes.
GPOs play a crucial role in healthcare by enabling providers to save on procurement costs, which can then be redirected towards enhancing patient care and services. These organizations also help streamline the purchasing process, reduce administrative burdens, and ensure the timely availability of medical supplies and services, contributing to the overall efficiency and quality of healthcare delivery.