A New Model for Healthcare Procurement
Beyond Cost Reduction
In the span of over 115 years, the business model for GPOs has remained virtually unchanged. Despite the rapid evolution of industries around it, the GPO sector is widely recognized as one of the few that has resisted meaningful modernization. The traditional GPO cooperative purchasing model, once effective, has become outdated and insufficient to meet the demands of today's healthcare landscape.
Relying solely on the GPO cooperative purchasing model is no longer enough. The needs of healthcare organizations have shifted dramatically, requiring more dynamic, flexible, and innovative sourcing solutions. Increasing pressures to control costs, generate revenue, and enhance supplier relationships have revealed significant flaws in the traditional GPO model, which struggles to adapt.
The GSO Advantage
Unlike GPOs that mandate hospitals follow standardized contracts and product offerings, the GSO provides the versatility for customized pricing and product selection.
While GPO pricing structures can be complicated, with supplier fees often lacking clarity for hospitals, the GSO offers a clear and straightforward contribution model.
The GPO's range of covered products and services is limited, while the GSO offers a far more expansive selection. Bulk buying is outdated and its inefficiency is evident when comparing the profit margins of hospitals to those of the GPOs and their vendors.
Unlock Hidden Value
GSO Affiliates across all spend categories provide audits and recommendations at no charge.
A New Era of Healthcare Procurement
GSO Affiliates have all developed unique analytics and algorithms that when combined with real-time process understanding creates savings for this supply on-demand economy.
GSO Affiliates benchmark pricing in real time, understanding that the same product or service is often priced differently even in the same market.
The GSO Affiliates rely on in-depth customized analytics creating data-driven decision making.
The GSO Affiliates only get paid after savings are achieved and the customers are 100% satisfied.
Success Stories
Financial Executive
"I look forward to working with the GSO as it manages to navigate the internal challenges of hospital sourcing groups and individuals whom historically have not embraced change. Hospitals cannot afford to miss an opportunity to implement something so successful and that comes with no risk."
Admin Executive
"The GPO model has not changed in 100 years and, like most hospitals, we see GPO pricing (where it exists) as the ceiling. So affiliated negotiated prices are now our floor."
Supply Chain Executive
"Participation in the first ever Group Savings Organization (GSO) is recognized as an incredible opportunity for us at Mercy. Our experiences with VPS over the better part of a decade has resulted in substantial savings and recovery of our technology spend. Now, as one of the charter members of the GSO, we can continue to reduce our costs while also increasing our non-patient revenue."
Technology Executive
"The GSO is the logical next step for hospitals faced with rising costs and lower margins. I am surprised it has taken this long for an organization to be created to support and change the GPO model. There is not a hospital in the country that does not need to look for innovative ways to reduce costs and generate additional non-patient revenue."
Turn Procurement into Profit
The GSO's model now allows for hospitals to generate revenue on purchases that actually cost less than they would only utilizing a GPO.
How to Generate Revenue with the GSO
