Healthcare group purchasing organizations are business consortiums created to leverage the purchasing power of a group of providers to obtain discounts from vendors based on the collective buying power of the GPO members. GPOs promise supply-chain savings on everything from commodities to capital equipment. Most firms also provide consulting services on organizational performance improvement. In exchange for administrative services and the ability to sell through the GPO to its members, vendors pay administrative fees to the GPOs—an arrangement for which the organizations hold an exemption from anti-kickback laws. GPO business practices have been the subject of several congressional hearings, including a Senate inquiry in 2002 that prompted the group purchasing industry to adopt a code of conduct.
- Round 1: Lost to Cinical and financial performance transparency