Article

7 Common Myths About Group Purchasing Organizations Debunked

October 16, 2025
doctor smiling at patient
Group purchasing organizations (GPOs) offer a range of benefits, such as helping clients reduce costs and improve efficiency through collective purchasing power that enables bulk discounts. It’s also important to note that not all GPOs are the same in terms of benefits, types of industries they serve, and the products and services they offer.
 
For example, Provista has deep expertise and dedicated contracts to meet the unique needs of non-acute healthcare, and another portfolio to serve the hospitality industry.
 
Even with differences between GPOs, their overall value proposition remains strong. That’s why it’s important to address misconceptions head-on, delivering the facts about how they operate and how clients benefit.
 
Here are seven common GPO myths and facts:

MYTH 1. A CATALOG APPROACH DOESN’T SOLVE UNIQUE CHALLENGES

Myth: GPOs offer a “catalog approach” that doesn’t meet the complex needs of non-acute healthcare facilities and other organizations. This persistent myth is based on the outdated idea that GPOs take a one-size-fits-all approach that does not address clients’ specialized needs. The myth perpetuates the mistaken perception that GPOs lack customization.
 
Fact: GPOs that specialize in non-acute healthcare, hospitality or another industry have a deep understanding of clients’ unique needs. For example, modern GPOs like Provista have a comprehensive portfolio of products and services, supported by industry expertise, that extend well beyond a simple or generic catalog list.
 
The reality is that GPOs do not box clients into rigid contracts. Instead, GPOs use data-driven insights to identify industry- and client-specific needs. Plus, negotiating contracts that align with clients’ goals, patient or customer demographics, and current business operations ensure GPOs solve unique challenges and ensure success.

MYTH 2. ORGANIZATIONS CAN FIND DEEP SAVINGS ON THEIR OWN

Myth: Organizations can find similar savings on their own through local contracts. The myth that organizations can get best-in-class pricing without a GPO stems from the idea that relationships with local suppliers are more flexible than national contracts and reflect regional pricing dynamics.
 
Fact: GPOs help clients save as a result of group purchasing and take advantage of both local and national contracts. Aggregated purchasing volume from thousands of clients—or more—gives GPOs significantly more negotiating power than a single facility can achieve independently. This scale translates into deep discounts along with better terms and conditions. While it’s true that companies may be able to secure competitive rates on some contracts on their own, they miss out on the tier pricing and rebates that come from using GPO contracts.
 
“One major factor is the ability to achieve cost savings and operational efficiency through bulk purchasing of office supplies, IT and technology, and facilities management service,” according to Technavio.

MYTH 3: SMALL ORGANIZATIONS DON’T BENEFIT FROM GPOS

Myth: Hospitals and large healthcare organizations are the only facilities to truly benefit from a GPO. Others, such as physician offices, urgent care centers or continuing care retirement communities, are too small to see meaningful savings. This myth is based on the mistaken idea that a facility’s individual purchasing volume determines its leverage.  
 
Fact: GPOs benefit organizations of every size with business, clinical and administrative contracts. Even the smallest organizations can access the same competitive pricing, rebate opportunities and contract terms as large organizations. Small companies have access to GPO resources and expertise that they probably don’t have in-house, helping them tap into savings and services that they may not be able to achieve on their own.
 
“Any business, regardless of size, can join a GPO to access pre-negotiated contracts with suppliers,” explains Precoro.

MYTH 4: CLIENTS FACE LIMITED OPTIONS

Myth: GPOs limit supplier options, which could cause organizations to accept a lower quality item or not allow physicians to choose a product they want, like a specific glove brand. This myth is based on the incorrect notion that GPOs lock clients into rigid contracts with limited suppliers.
 
Fact: GPOs can procure the brands—or similar brands—that clients want. Modern GPOs like Provista offer an extensive portfolio with items from a variety of suppliers for both generic and brand-name products. Organizations can choose the brands and items that best meet their clinical or operational needs. Rather than restricting choice, GPOs provide cost-effective purchasing decisions backed by data, product evaluations and supplier performance metrics.  

MYTH 5: BECOMING A CLIENT IS CUMBERSOME

Myth: Getting started with a GPO is complicated and entails a long onboarding process. This misperception can make organizations hesitant to work with a GPO, shutting the door on savings and benefits before the partnership can take shape. While onboarding may have been cumbersome at one time, the digital age has made signing up easy.
 
Fact: Organizations can get up and running quickly, with no risk or investment. The process is as smooth and efficient as possible. GPOs offer dedicated account support and simplified enrollment to guide new clients from contract activation to supplier coordination, helping to identify savings opportunities. Organizations that sign up with a GPO can realize value starting on day one, without disrupting operations.

“By separating fact from fiction, organizations can better understand how to maximize the value of GPO partnerships”

MYTH 6: GPOS FAVOR SUPPLIERS OVER CLIENTS

Myth: GPOs mainly benefit suppliers. This myth wrongly claims that GPOs act as a sales channel that prioritizes vendor interests over those of healthcare providers or other clients. The misconception overlooks GPOs’ core mission—to serve clients by helping them reduce costs, improve efficiency, and access high-quality products and services.
 
Fact: The most successful GPO relationships are built on mutual value—with both providers and suppliers seeing advantages. Clients benefit from sustainable value that extends beyond pricing. While suppliers benefit from increased volume and broader market access, GPOs negotiate contracts on behalf of clients—not vendors. Many GPOs, including Provista, also provide benchmarking data and buying insights to help clients make informed, cost-effective procurement decisions.

MYTH 7: A SPECIALITY GPO ISN’T NEEDED FOR NON-ACUTE CARE

Myth: All GPOs are alike. The myth falsely maintains that GPOs offer the same contracts, services and savings. This is misleading because it dismisses the fact that GPOs vary significantly in terms of focus, expertise and the tangible value they deliver.
 
Fact: Many GPOs specialize in industries, such as non-acute healthcare, and are very different in the services and value they deliver. Their solutions are designed to meet the unique challenges of client environments.
 
A GPO that understands the needs of physician offices, long-term care facilities and ambulatory surgery centers, for example, will offer more specific contracts and strategic guidance than one serving manufacturing. Likewise, a GPO serving hospitality will have a dedicated food program for that sector. Choosing the right GPO can make the difference in maximizing savings, efficiency and support.

UNDERSTANDING THE ROLE OF GPOS

GPOs are often misunderstood, but once the myths are debunked, it’s clear they provide  measurable value—especially for non-acute and specialty industries like hospitality. Modern GPOs like Provista deliver tailored solutions, ongoing savings and strategic support to organizations of all sizes.
 
By separating fact from fiction, organizations can better understand how to maximize the value of GPO partnerships. Non-acute providers, hospitality organizations and others are realizing the benefits of working with GPOs, which is fostering growth. The GPO service market is expected to increase by $2 billion from 2023 to 2028, which is a growth rate of 5.6%. It’s why organizations should consider using a GPO or expanding their current GPO contracts to improve their business.

You Might Also Like

Ready to Get Started?

Take the next step to start saving.

Become a Member