Determining when integrated delivery systems should belong to GPOs.
Membership in national group purchasing organizations (GPOs) is a proven way for healthcare organizations to access supply price discounts through collectively negotiated contracts. Yet, for various reasons, both suppliers and healthcare materials managers have expressed dissatisfaction with GPOs. Integrated delivery systems (IDSs), in particular, may find that negotiating with suppliers independently is a more cost-effective alternative. Whether an IDS should participate in group purchasing or negotiate with suppliers on its own depends on the following factors: whether the IDS would find it relatively simple to get its clinicians to standardize on certain key supplies; whether the IDS has sufficient staff to devote to contracting; whether the benefits offered by the GPO do not outweight the costs of membership; and whether all of the supplier products and services the GPO makes available also are available through second-tier suppliers eager to negotiate directly with the IDS.
Smith
C R
CR
NCI, Rancho Santa Margarita, CA, USA.
D003258:Consumer Behavior; D003284:Contract Services / Q000191:economics / Q000458:organization & administration; D003362:Cost-Benefit Analysis; D003625:Data Collection; D003659:Decision Making, Organizational; D019033:Delivery of Health Care, Integrated / Q000191:economics / Q000458:organization & administration* / Q000706:statistics & numerical data; D005069:Evaluation Studies as Topic; D017754:Group Purchasing / Q000458:organization & administration* / Q000706:statistics & numerical data; D008421:Materials Management, Hospital / Q000191:economics / Q000458:organization & administration* / Q000706:statistics & numerical data; D017008:Negotiating; D009935:Organizational Affiliation; D014481:United States