Healthcare economists at DaVanzo & Associates compiled the report from National Health Expenditure data published by CMS and surveyed hospital and nursing home networks that used GPOs. The respondents represent 530 facilities with a total business volume of $59.7 billion.
Five things to know:
- The Healthcare Supply Chain Association is a trade group that represents 13 purchasing organizations.
- HSCA’s report found that 98 percent of all U.S. hospitals use a GPO and work with an average of two to four GPOs per hospital.
- GPOs save the entire healthcare system $34.1 billion annually and are expected to save the industry $456.6 billion in the next decade.
- Hospitals and health systems that use group purchasing organizations save an average of 13.1 percent across most expense categories on supply-related costs compared to those that don’t.
- GPOs save Medicare $8.7 billion annually and save Medicaid $6.8 billion annually, according to the report. They are expected to save Medicare $116.3 billion in the next 10 years and save Medicaid $90.1 billion in the same time frame.
Read the full report here.
More articles on supply chain:
FEMA: Defense Production Act for COVID-19 tests is no longer necessary
Trump signs order outlawing price-gouging, hoarding of medical supplies
Apple, Microsoft & more commit to donating millions of masks, PPE to US providers
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
