The GPO Connection: 10 Reasons It’s More Important Than Ever

February 28, 2024
Pharmacist walking alongside shelves of medication
Non-acute healthcare facilities are finding new ways to modernize and transform their organizations using digital technologies, automating processes and becoming more data driven. Despite these advances, organizations continue to face new and ongoing challenges across many aspects of their business.

Even facilities that have taken a modern approach to their business and clinic often need outside expertise to help solve their pain points, improve efficiencies and find ways to uncover new value. A group purchasing organization (GPO) can help. An experienced non-acute healthcare GPO like Provista has a deep portfolio to offer competitively priced business and clinical products and services, and it also has the expertise to proactively solve problems.


1. Delivers group purchasing discounts. The GPO model is based on the premise that collective purchasing—combining the buying power of hundreds or thousands of organizations—reduces prices by securing group discounts. GPO prices are lower than individual companies can secure on their own. For example, Provista leverages more than $135 billion in purchasing power to ensure competitive contracts.

2. Utilizes a team that implements the best contracts. Choosing the best contracts, knowing when contracts expire and having a line of sight into new or alternative contracts is time-consuming. Many organizations do not have the time to handle these tasks internally, and even if they do, they don’t have the expertise to know which contracts are best for their organization. That’s why GPOs like Provista have a contract implementation team to get the right contracts at the best price.

3. Delivers enhanced terms and conditions. In addition to offering competitive prices on the goods and services organizations use every day, GPOs deliver additional value with strong terms and conditions. For example, Provista offers terms and conditions that can include extended warranties, improved shipping and installation conditions, and enhanced maintenance—at no additional cost to the member.

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. 



“A GPO might be the most valuable partner a non-acute facility can have. ”


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. 

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