GPOs Expected to Generate up to $864.4B in Industry Savings Through 2022

Over the next 10 years, group purchasing organizations are positioned to generate incredible savings for the healthcare industry. A report released by the Healthcare Supply Chain Association and healthcare economists at Dobson DaVanzo & Associates found GPOs could help reduce overall healthcare spending by up to $864.4 billion by 2022.

Advertisement

The economic analysis found Medicare and Medicaid will experience significant savings over the same time period as well, at $229.3 billion and $169.5 billion, respectively.

In 2012, GPOs generated $55.2 billion in savings to the healthcare system, and researchers believe this trend will continue.

Researchers even suggest these savings estimates fall on the low side. Since GPOs bring down supply costs, “this means that there is some portion of the savings attributable to GPOs which is ‘buried’ in the baseline and is incalculable,” according to the report.

More Articles on GPOs:

Premier Files Comments on FY 2015 IPPS Proposed Rule
Health Apps Coming to GPOs
11 Ways GPOs Can Help Mitigate Drug Shortages

At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.

Register to Attend Webinar

Beyond the bottleneck: How health systems are improving access, flow and care continuity

Thursday, July 30
1:00 PM - 2:00 PM CDT

Presenters: Imamu Tomlinson, MD, MBA, VituityWilliam Morice II, MD, PhD, Mayo Clinic LaboratoriesJordan Dale, MD, Houston MethodistAsh Tengshe, City of HopeChris Klay, MHA, MA, PT, FACHE, Hospital Sisters Health System

Advertisement

Next Up in Leadership & Management

Advertisement

Comments are closed.