If you have ever been in a situation where the prices of goods or services are being negotiated, you know what a frustrating and difficult experience it can be for both buyers and providers. The back and forth discussing the different factors and reasons why is exhausting, sometimes seeming like it will never end. However, the buyer can have leverage in one instance – when the size of the need is large and therefore the potential size of the deal for the provider.
Deals for Healthcare Equipment and Furnishings are generally substantial as facilities replace large quantities of Equipment or Furnishings at one time. As a result, many Healthcare facilities aim to use the substantial nature of their purchases as leverage to gain better pricing. One way facilities are doing this is by obtaining membership to what is known as a Group Purchasing Organization or a GPO.
The Healthcare Supply Chain Association (HSCA) defines Group Purchasing Organizations (GPOs) as entities that help “healthcare providers — such as hospitals, nursing homes and home health agencies — realize savings and efficiencies by aggregating purchasing volume and using that leverage to negotiate discounts with manufacturers, distributors and other vendors.” Recent analysis by the HSCA “found that GPOs save the healthcare system up to $55 billion annually, while a recent analysis from former Federal Trade Commission Chair Jon Leibowitz found that GPOs save providers an average of 10%-18% on product and services.”
The benefits of GPOs for Healthcare facilities are immense, and at Novum Medical Products we know how important cost savings are to Healthcare facilities that work within strict budgetary constraints. That is why we are proud to offer our customers the ability to take advantage of our GPO Contracts that cover all our product categories. See all our GPO Contracts below:
If you are not already a member of these GPOs, we invite you to click on any of the following links to learn more and become a member! Premier, Vizient, HPG, DAPA. Please feel free to give us a call if you have any questions. (800) 274-2742
Another way we work to save our customers money are with Local Cost Saving Agreements. Novum Medical has created Local Agreements to take the thinking and price shopping out of the reordering of highly used and frequently replaced products. You can continue to purchase through your Prime Vendor or GPO off the Local Agreement, while making the reordering process for these products standardized and efficient!
Give us a call today to set up your Local Agreement or to learn more about our great GPO Contracts! (800) 274-2742.