As originally asked by Nancy M.

David Kopa
Customer Operations Planning Manager at Autonomic Technologies, Inc.
From the hospital’s point of view, joining a GPO provides them with access to better prices on products they use to provide care. A GPO will use the collective purchasing power of their members to negotiate with manufacturers and contract for more favorable prices than members could access individually. So GPO’s are somewhat analogous to Costco…

Gary Rosensteel
Business Therapist, NuCoPro
GPO’s are the ‘gate keepers’ of a LOT of medical sales; particularly for equipment and lower cost devices. Having your product added to the ‘approved’ list of GPO’s validates that it has been vetted through a due diligence process and makes it easier to sell to individual facilities.

Massimiliano Taroni
Technical Sale Manager
We could produce long durability instruments on request for medical equipment, if you are interested.
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Bye

Pamela Toon
President at Phoenix Medical Distributing, Inc.
If your company promotes a commodity type product, acquiring a GPO contract may be very beneficial. However, if the hospitals who belong to the group are not compliant in utilizing and supporting the GPO contract, it may not help you much. The GPO contract is generally preferred for members, however, it serves as an entrance for introduction of products that are listed on the contract. A GPO contracted item must meet the specifications set for that product line . As with all product promotions, nothing, including a GPO agreement, will assist more in product procurement than old fashioned features and benefits selling and solid customer rapport. in other words, it can open the door, but may not insure closure of the sale.

Martha Bowers
Consultant – Organizational Development / Change Strategist
Most US GPO’s reside in the Pharmacy verse DME. It allows small companies to benefit from a GPO’s negotiated discount pricing. Benefits are using their operating systems, min/max levels, reordering, and inventory management. Most larger companies will manage compliance to lower cost formulary products, but a GPO will allow the acquisition of items when the one off (not normally stocked) item when necessary to meet a patients requirements. The GPO’s typically can deliver next day.

Mario Martinez
Managing Partner at Tecnix, LLC
In the U.S. consider them the equivalent of issuers of hunting licenses that open the gate to sell in a non exclusive club. If your product is unique you don’t need them. Outside the U.S. different story especially with consolidators