Premier, the Charlotte, N.C.-based provider of group purchasing services and quality improvement tools, has acquired the remaining 40% of the company that operates its direct sourcing business.
Premier Wednesday said it will spend $14.5 million to buy the remaining interest in S2S Global, about three years after it purchased a 60% interest in the company.
GPOs such as Premier have been diversifying their business models for several years. Developing direct sourcing businesses has been one area of focus for several GPOs. Premier’s activities put it in direct competition with manufacturers, private-label programs, and distributors such as Cardinal Health and Medline Industries.
Premier’s member hospitals can directly source certain medical products that meet their specifications, presumably at lower costs.
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