4. Offers price protections. Organizations can experience volatile pricing due to sudden shifts in supply and demand. This can cause the price of essential products to skyrocket. GPO contracts offer built-in price protections, meaning contracted prices cannot rise above a certain level over a specified amount of time. As a result, members are protected against unstable pricing and unexpected cost increases that impact the rest of the market.

5. Customizes contracts. Facilities can usually find all the products and services they need through a GPO’s portfolio. Yet sometimes, standard contracts don’t meet the unique needs of a large organization. GPOs can offer custom contracts tailored to deliver the exact product, service, feature or timeframe a member needs.

6. Helps mitigate supply chain disruptions. GPOs use proven strategies, reputable suppliers and data insights to proactively identify and in some cases, eliminate supply chain problems. GPOs utilize a diverse range of suppliers to reduce reliance on a small number of companies, allowing the GPO to tap into more sources to meet demand. In addition, GPOs assess suppliers to determine their risk and stability, and leverage data to have visibility across the supply chain.

7. Standardizes products. Standardizing items drives efficiency by streamlining operations and suppliers. When a member buys more products from fewer vendors, they can realize benefits such as potentially larger rebates, less supplier onboarding and fewer deliveries. Deliveries typically have more items, but don’t arrive as often, which makes receiving more efficient. Provista offers strategies to consolidate suppliers and standardize products.

8. Ensures accurate pricing. Sometimes organizations are inadvertently billed an incorrect amount for items. Resolving price discrepancies can be time-consuming. Many facilities don’t have the resources to address these problems themselves. A GPO makes sure members pay the contracted price and if they’re not, works with the supplier to make the correction.

9. Automates procurement processes. A GPO can help members implement technologies to modernize and digitally transform. A materials management platform, for instance, can simplify and automate many aspects of procurement. Envi® does this and more. The materials management software, which Provista offers, can reduce product costs by 15%, reduce inventory by 42% and maximize on-contract spend.

10. Provides priority access. When shortages occur, organizations may not be able to access needed products. A GPO can help. In some cases, GPO members have first access to products during shortages or in other cases, receive preference to allocated supplies. For prescription drugs, Provista offers a pharmacy program to give members uninterrupted access to in-demand pharmaceuticals. 

OPTIMIZE DATA AND MODERN TECHNOLOGIES TO ASSIST THE BUSINESS

Joining forces with a GPO enables facilities to improve processes and drive value in all areas of the organization. This includes better leveraging data, transitioning from manual processes to automation and making data-driven decisions. Facilities can be assured they’re leveraging the most optimal contracts for their business.
 
With a GPO, facilities also have a partner to help ensure the correct products arrive at facilities on time, they are maintaining compliance in a complex regulatory environment, and they have early insights into market trends for new business opportunities. A GPO might be the most valuable partner a non-acute facility can have.