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Advantus Health Partners is Changing Traditional GPO Approach to Supply Chain


News provided by

Advantus Health Partners

Aug 20, 2024, 09:00 ET

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Health solutions company drives value for patients by offering GPO options

CINCINNATI, Aug. 20, 2024 /PRNewswire-PRWeb/ -- Many Group Purchasing Organizations (GPOs) are structured around exclusivity agreements, which has been the health care industry's traditional supply chain purchasing model. In recent years, there has been an upward trend in GPO exclusivity agreements. In contrast, Advantus Health Partners drives value into their GPO approach by providing options to its clients.

"A GPO that limits your options is not your partner," said Dan Hurry, president of Advantus Health Partners. "To drive value you need options that come with economic benefits, pairing cost with quality and ultimately improving patient care. This is similar to a retail consumer environment where most of us shop at more than one grocery or home improvement store, in order to find the value and variety that we want and need."

"GPOs that limit your options are not your partner," said Dan Hurry, president, Advantus Health Partners. "To drive value you need options with economic benefits, pairing cost with quality to improve patient care. This is similar to shopping at more than one grocery store to find the value we need."

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Similar to the consumer example, certain GPOs can grant health systems lower prices on some products, but they can't offer the best value in every category. A secondary or supplemental GPO can provide distinct, valuable contracts and vendor partnerships that lower costs and improve patient outcomes.

To assist a new regional health system client, Advantus started with a supplier analysis and determined that using a secondary GPO would bring an 11% savings on key medical supplies to the health system, pulling them out of the traditional negotiation process when only one GPO is utilized.

Advantus knows the legacy GPO relationship doesn't support a successful supply chain in today's competitive landscape and the economic pressures on the health care industry.

"Optimizing the number of suppliers reduces unnecessary variability, improves quality and increases supply chain resilience, said Jimmy Chung, M.D., chief medical officer, Advantus Health Partners. "This improves quality of care, reduces stress on clinicians and staff and decreases variability."

About Advantus Health Partners
Advantus Health Partners is a health care solutions company that makes supply chain easier for its clients through streamlined supply chain management, organizational purchasing, operations and cost-savings efficiencies. With innovation at the forefront, and an advanced operational model, Advantus provides a portfolio of solutions to further drive value beyond contracting, all with the singular goal of reducing health care costs across the U.S. Advantus is committed to helping organizations meet business goals through its distinct solutions.

Media Contact

Trent Freeman, Advantus Health Partners, 770-299-9676, [email protected], https://advantushp.com/

SOURCE Advantus Health Partners

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