“For the healthcare provider, participation in GPO model means reduced procurement costs, better supplier relationships and readiness for compliance audits,” explains Virtro Commerce. “Suppliers benefit from predictable demand and a simplified account management process, making the partnership mutually advantageous.”
 
While GPOs as a whole enable benefits across various aspects of businesses, it’s also important to note that not all GPOs are the same. They can vary significantly based on the industries they serve, such as hospitality or non-acute healthcare. Each GPO can specialize in dedicated product portfolios tailored to an industry’s specific needs. For example, GPOs may offer contracts for medical equipment and pharmaceuticals for ambulatory care providers, or an expansive food portfolio for hospitality.
 
Customized procurement solutions offered by GPOs align with sector-specific demands and goals. That’s why several organizations have shared how GPOs provide ongoing value and savings that clients cannot achieve on their own. Here’s what third parties say about GPOs:
 

DELIVERING SIGNIFICANT PRICING DISCOUNTS

GPOs are known for their cost-saving abilities enabled by group purchasing. They aggregate the purchasing volume of hundreds or thousands of clients for bulk buying, leading to better pricing, discounts and terms.
 
This collective buying power helps clients reduce expenses on products and services. They typically see substantial cost savings across the supply chain. For example, Provista clients save an average of about 15% on their purchases.
 
Approximately 97% of hospitals have an affiliated GPO and research suggests that those GPOs decrease the cost of healthcare by as much as $55 billion each year, according to Definitive Healthcare. This points to the ongoing value of a GPO, including for non-acute providers.
 
“GPOs act as lifesavers for healthcare organizations struggling to maneuver the rising costs and stringent regulations and don the hat of trendsetters in using high-end tech like sophisticated analytics and e-commerce to streamline operations,” notes IBIS World.

SIMPLIFYING PROCUREMENT PROCESSES

GPOs can automate and manage end-to-end procurement processes to make them more efficient and save valuable time. Another benefit is that a GPO provides one contact for clients, which simplifies procurement and eliminates the need for organizations to manage separate contacts for each vendor.
 
“One of the most significant benefits of joining a GPO or supply chain cooperative is that members can use a single point of contact for procurement for specific categories,” according to The Digital Supply Company.
 
Likewise, GPOs help simplify processes for suppliers, which helps them reach a larger audience. “GPOs secure products at fair prices for the benefit of patients, providers, Medicare, Medicaid and taxpayers,” according to Access Market Intelligence. “GPOs take a comprehensive approach to sourcing and contracting that not only accounts for the competitive price offered, but also the quality, reliability and stability of supply.”
 

REMOVING COMPLEXITIES FROM THE SUPPLY CHAIN

A streamlined supply chain can lower inventory costs, offer better visibility and reduce shipment delays. These are other areas where GPOs can provide value.
 
“GPOs often collaborate with logistics providers to optimize delivery schedules, reduce inventory holding costs and ensure timely access to products,” according to Sales Data Generator
 
Organizations such as non-acute healthcare providers need to ensure compliance when purchasing products. Companies with multiple locations also want to ensure standardized pricing across each facility, which helps with budget planning and consistent costs. A non-acute healthcare focused GPO like Provista supports compliance and ensures standardized costs across each location.
 
“GPOs help ensure that contracts meet regulatory and quality standards, which is critical in the healthcare industry,” according to EOS Surfaces.
 
Plus, a study indicates that 80% of GPO clients experienced improved contract compliance and easier regulatory navigation through GPO partnerships. “GPOs provide expertise in contract management to help healthcare providers remain compliant while reaping cost benefits,” according to Sales Data Generator.

REMOVING BARRIERS TO SUPPLIER NEGOTIATIONS

By giving clients access to pre-negotiated contracts, GPOs eliminate the need for a lengthy negotiation process for organizations. Clients benefit from both industry-leading pricing and confidence that the contracts are pre-vetted.

“By leveraging the collective buying power of the group, members can negotiate better pricing and terms with suppliers,” according to The Digital Supply Company. “This not only reduces costs but also simplifies the procurement process by reducing the need to negotiate with multiple suppliers.” 

This efficiency allows organizations to redirect time and resources toward strategic initiatives rather than supplier negotiations. With GPOs handling supplier relationships and contract management, clients can focus on delivering value and outcomes within their core operations, such as quality healthcare for non-acute providers. As a result, organizations can trust GPOs to centralize procurement even further.
 
“GPOs simplify the procurement process by centralizing purchasing activities for their members,” explains The Funding Family. “Instead of each healthcare provider or facility independently sourcing and negotiating contracts, they can rely on the GPO’s expertise and established relationships. This streamlines the procurement process, saving time and resources.”
 
BENEFITS THAT EXTEND WELL BEYOND COST SAVINGS
While GPOs are known for delivering significant cost savings, their value impacts all areas of procurement. From simplifying buying and streamlining supply chains to ensuring regulatory compliance and enabling data-driven decisions, they help clients operate more efficiently and strategically.
 
Depending on the needs of their clients, some GPOs also offer analytics, compliance support and supply chain consulting. Because they serve different industries—like non-acute healthcare and hospitality—each GPO customizes its offerings, product portfolios and expertise to deliver maximum value for its specific sectors.
 
“They stay updated on the latest market trends, industry regulations and best practices, providing valuable guidance and support to their members,” according to The Funding Family. “This allows healthcare providers and facilities to focus on their core mission of delivering quality patient care.”