Hospital Supply Chain Expense Savings You Can Achieve Without Changing Your GPO

Most weeks we see at least one news release announcing that a healthcare organization has changed their GPO and is touting the benefits of doing so. However, from our viewpoint, hospitals, systems, and IDNs change their GPO for one primary reason – they are running out of price savings. Yet, here’s a little-known secret you need to know: You don’t need to change your GPO to generate new substantial supply chain expense savings, especially since these new GPO savings take as long as six to eight months to materialize, not to mention the cost to convert contracts. With this said, here are the three main sources of supply chain expense savings we recommend to our clients to achieve new savings without changing their GPO: