Medical Economics recently published an article highlighting the benefits of partnering with a group purchasing organization (GPO) or physician buying group (PBG). Practices can expect savings ranging from 5 percent to 25 percent by joining such a group. Highlights include:
- Don’t base your GPO choice on what your hospital uses. Physician offices have different needs than hospitals. Find a group that fits your specific needs.
- Revisit pricing every year or two and compare groups. The needs of a practice can change over time, and there is no one size fits all solution.
- Know the difference between a GPO and PBG. GPOs are membership organizations that offer discounts on most everything involved in a medical practice such as capital equipment, supplies, and services. PBGs also offer discounts on supplies and services, but they primarily serve as vaccine buying groups. Due to their vaccine focus, PBGs are able to provide superior pricing.
- Let your vendors do the work of pricing. Put your top purchased items out for bid to ensure you are getting the best price.
- Check if your distributor performs additional services like stocking and ordering supplies.
To read more, visit Medical Economics online.