DYK: GPOs Continue to Multiply, Save Hospitals Money
Group Purchasing Organizations (GPOs) are an important cog in the wheel of the nation's healthcare supply chain. The first GPO, the Hospital Bureau of New York, was formed in 1910. From that point forward, the number of GPOs grew slowly. The creation of Medicare and Medicaid gave GPOs a bump and helped them grow to 40 in number by 1974.* Today, various studies report that 85-90% of all medical facilities in the US are members of a GPO. According to the Healthcare Supply Chain Association, GPOs have enabled hospitals to save up to $33 billion a year.** GPOs certainly help the healthcare wheel keep spinning.
* DeBenedette, Valerie. "The Evolution of Group Purchasing Organizations." Drug Topics. Modern Medicine. October 10, 2016. Web. July 6, 2017.
** Sambrowski, Terry. "How Group Purchasing Organizations And Distributors Can Benefit Each Other." Industrial Distrbution. Advantage Business Media. May 13, 2016. Web. July 6, 2017.