Hospital purchasing alliances: Ten years after

Area of Science:

• Healthcare Management
• Supply Chain Optimization
• Health Economics

Background:

• Hospitals widely utilize purchasing alliances, or group purchasing organizations (GPOs), for supply procurement.
• Limited national data exists on GPO utilization, services, and performance trends.
• GPOs are crucial for cost control but face challenges from self-contracting and business practice criticisms.

Purpose of the Study:

• To compare the utilization, services, and performance of GPOs in 2004 and 2014.
• To analyze trends in hospital engagement with national and regional/local alliances.
• To assess changes in perceived value and satisfaction with GPO functions.

Main Methods:

• Analysis of two comparable hospital surveys from 2004 and 2014.
• Statistical significance testing to evaluate changes in GPO utilization and performance metrics.
• Examination of regional/local alliance affiliation with national GPOs and hospital self-contracting.

Main Results:

• National GPO purchasing has slightly decreased, with increased hospital diversification into regional/local alliances and self-contracting.
• Hospitals increased purchases in many categories via national GPOs, recognizing their value-added services.
• Hospital satisfaction with GPO functions improved, though performance on most dimensions remained stable.

Conclusions:

• National GPOs continue to fulfill important, valued roles within hospital supply chain management.
• GPOs contribute significantly to hospital cost savings and service enhancement.
• Increasing GPO complexity and self-contracting necessitate greater hospital investment in purchasing expertise.