GPOs bring bottom-line benefits to long-term care providers, other healthcare organizations: report

Share this article:

Group purchasing organizations are making costs lower for long-term care operators and other healthcare providers, asserts a recent report from the Healthcare Group Purchasing Industry Initiative (HGPII).

HGPII is a 10-member nonprofit organization founded in 2005 by the chief executives of nine GPOs, and is dedicated to “the development and improvement of accountability standards.” Each year, it surveys its members and releases a public accountability report. HGPII members represent “a large percentage of total GPO purchasing,” according to the report, which was released Feb. 15.

Many long-term care providers turn to GPOs to save on supplies. The 2013 report comes about 10 months after the Government Accountability Office questioned whether GPOs receive inappropriate administrative fee payments from vendors. Because these fees “are typically calculated as a percentage of each GPO customer's purchases through the GPO contracts,” lawmakers were concerned vendor fees may discourage GPOs from negotiating for the lowest prices for their customers.  

The HGPII report contradicts this idea, saying almost all members keep vendor fees at or below 3%.

"The HGPII model is based on a fair, open, and competitive contracting process that is free of conflicts of interest and any undue influence," said former Sen. Robert Bennett (R-UT). Bennett oversaw the HGPII review with former Sen. Byron Dorgan (D-ND) and former Rep. Philip English (R-PA).

The full report is available here.

Share this article:

More in News

Post-acute standardized assessment bill passes House

Post-acute standardized assessment bill passes House

A bill that would standardize data in post-acute settings moved closer to reality after a House of Representatives voice vote in its favor Tuesday. The House's approval of the Improving ...

ACA hasn't created more part-time workers, analysis says

Despite fears to the contrary, there's no evidence that the Affordable Care Act increased part-time work before 2014, according to a new analysis.

Also in the News for Sept. 18, 2014

Arkansas' charity protection statute could protect nursing home in lawsuit... Institute of Medicine releases end-of-life report ...Congressional roundtable group says Medicare telehealth rules need to be updated