5 ways to make the most out of a group purchasing organization

As economic pressures continue to increase and the ability to efficiently manage costs is emphasized, organizations are looking wherever they can for financial relief. That's why it's no surprise many are turning to group purchasing organizations for smaller administrative fees, more transparent transactions and a general partner in healthcare reform.

Todd Ebert, president and CEO of healthcare GPO Amerinet, outlines five ways to make the most out of your group purchasing organization. 

1. Use the resources your GPO offers to the fullest. Traditionally, said Ebert, group purchasing organizations used a portfolio of contracts that providers can access to save money through aggregated purchasing power. Although this is still the case, GPOs have evolved to offer additional programs and services available to providers who may not have the resources to devote to them. According to Ebert, providers can look to a GPO for areas like:

• Supply chain management: Allow your GPO to routinely evaluate your supply chain data, said Ebert, and they'll find opportunities to save money through reduction in duplication, utilization, usage, etc.

• Data and business intelligence: GPOs offer tools to take disparate organizational data and turn it into workable and actionable information, said Ebert. This allows members to more effectively manage areas, including physician preference items, supply expense, finances, operations and profitability. 

• Quality and patient safety: With the advent of value-based purchasing, said Ebert, your GPO may be able to provide you with a quality assessment-focused "proactive evaluation" regarding operational quality, patient safety, regulatory compliance and improvements in clinical outcomes.   

• Financial management: GPO resources and partnerships can present opportunities for facilities to establish predictable cash flow and significant increases in operating margins, said Ebert. They can also help identify and implement margin improvement initiatives.
• Workforce challenges: Programs are available to assist providers in reducing patient length of stay through process improvement, addressing labor cost issues and improving recruiting and retention practices, said Ebert. 

2. Use and keep current with the contract portfolio. There are changes that can take place in regard to tiers and vendors, said Ebert. "If you don't keep engaged, you may miss opportunities," he said. "Many GPOs have robust customer and clinical service teams, which are tasked with helping members increase the savings for their customers through assessment, standardization and utilization." Engage them, Ebert said. "They're there to help you."

[See also: Costs rise faster than revenue in physician practices, survey finds.]

3. Look to your GPO for help with clinician preference items. "GPOs have developed and use very robust databases that can be invaluable in price negotiations and working with physicians, which is an area of tremendous cost savings opportunities," said Ebert. Use your GPO in this area to help implement a strategy for reducing "high-dollar" implant costs, while positively impacting your clinical outcomes and physician support. 

4. Use your GPO as a source of education and information. Do you have tools such as webinars, briefings and best practice case studies at your disposal? Take advantage of them, said Ebert. "Your GPO can support the professional growth and development of healthcare executives, managers and staff by providing high quality, cost-effective educational [information], accessible in a variety of ways."

[See also: Cost to live in long-term care facilities continues to climb.]

5. Participate with your GPO. According to Ebert, these organizations really do want to hear from you and gain your feedback. "Many GPOs have customer/member feedback mechanisms," he said. In fact, some actively seek member input for issues like program development, contracting strategies and supplier selections. "By participating in committees, forums and meetings, members gain a voice in developing new programs and enhancing the delivery of healthcare services," he said.