Healthcare Executives Surveyed, Recognize Value of GPOs

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CHAMPS Group Purchasing recently found two studies which suggest healthcare executives see group purchasing organizations (GPOs) as valuable partners in improving performance and increasing savings.

When you work with members every day, it's easy to see how collaborating with them can improve their overall supply chain performance. It's great to see healthcare executives recognizing this and our value.

Findings from two recent studies suggest healthcare executives see group purchasing organizations (GPOs) as valuable partners in improving performance and increasing savings.

Integrated Delivery Network (IDN) Summit Market Research on the Value of GPOs:

In their Sept. 22-24, 2014 Market Research Report, The Evolving Supply Chain Relationship, the IDN Summit shared survey results gathered from over 200 senior, healthcare supply chain executives to gain a better understanding of the evolving business relationships commonly found within supply chain management.

As part of their report the IDN Summit shared, "When asked to assess the effectiveness of current supply chain partnerships, GPOs were selected most often as the partner that IDNs best collaborate with to improve performance, almost equaling the total of the two next closest combined." GPOs were selected by 38 percent of respondents, followed by distributors with 26 percent of the response and suppliers with 17 percent.

Wharton University of Pennsylvania Research on the Value of GPOs:

In their September 2014 report, Hospital Supply Chain Executives' Perspectives on Group Purchasing: Results from a 2014 National Survey, prepared for the American Hospital Association (AHA) and The Association for Healthcare Resource and Materials Management (AHRMM) under an AHA/AHRMM research grant, The Wharton School shared results from a national survey of 1,210 hospital executives with responsibility for supply chain management.

As part of their report, the AHA shared, "The vast majority of hospitals use Group Purchasing Organizations to bend the health care cost curve and meet patient supply needs...While hospitals’ purchasing decisions are driven by clinical rather than financial considerations, 90 percent of hospitals use national GPOs and 88 percent of hospitals agree that their GPO generates savings from lower prices."

"As a GPO with a 20+ year history and roots in healthcare group purchasing, we are pleased to see these survey responses on the value of GPOs," said Tracy Wise, director of operations, CHAMPS Group Purchasing. "When you work with members every day, it's easy to see how collaborating with them can improve their overall supply chain performance. It's great to see healthcare executives recognizing this and our value."

To learn more about CHAMPS Group Purchasing contact Tracy Wise at 216.255.3695 or via email.

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CHAMPS Group Purchasing leverages the purchasing power of 5,000+ members across the United States allowing them access to significant savings in product categories, including medical supplies, foodservice, wireless, office supplies and facility maintenance. As an owner of Premier, one of the largest buying groups in the country, CHAMPS sponsors its members allowing them access to more than $40 billion in purchasing volume, 2,000+ agreements, GPO contract management and unparalleled customer service. It’s simple to start realizing significant savings - with zero fees and no cost to join - the sign-up process is seamless. CHAMPS is honored to be named as one of The Cleveland Plain Dealer’s Top Workplaces in 2014 and to ERC’s Northcoast99 List in 2003, 2004, 2010, 2012 and 2014. For more, visit champsgpo.com.

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Julie Cox
@CHAMPShlthcare
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