Operators benefit by using GPOs, industry report asserts

Long-term care operators are reducing their purchasing costs by taking advantage of group purchasing organization, according to a study by the Healthcare Group Purchasing Industry Initiative. The report adds that GPOs “maintain high ethical standards and business practices that promote innovation, transparency in the bidding process and compliance.” The pro-GPO study counters an earlier investigation by the Government Accountability Office. Federal auditors questioned whether GPOs receive inappropriate administrative fee payments from vendors.