The Healthcare Supply Chain Association report, released during the COVID-19 outbreak, is proof that GPOs are "more important than ever."
Healthcare group purchasing organizations (GPO) delivered $34.1 billion in cost savings to providers in 2019, according to the third annual value report released by the Healthcare Supply Chain Association (HSCA) Tuesday.
HSAC found that GPOs increase competition, innovation, and transparency, all of which benefit health systems.
The report added that GPOs are expected to save the healthcare industry more than $450 billion over the next decade and reduce supply chain-related purchasing costs by 13.1%.
Related: COVID-19 Outbreak Threatens Health Systems With New Financial Challenges
HSAC stated that GPOs provide a crucial service to provider organizations in the face of public health crises, like the ongoing coronavirus disease 2019 (COVID-19) outbreak.
GPOs provide health systems with preparation for public health threats, HSAC stated, as well as with improved response and rebuilding efforts.
"As the United States continues to address the spread of COVID-19, supporting healthcare providers and the patients they serve is more important than ever. GPOs are on the front lines of patient care, working with provider partners to deliver a safe and reliable supply of the best products at the best value,” Khatereh Calleja, CEO of HSCA, said in a statement. "This year’s HSCA Annual Value Report confirms what hospitals, healthcare providers, suppliers and policymakers see every day: GPOs support emergency response, reduce costs, enhance quality, increase competition, and drive transparency throughout the healthcare system."
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.