HSCA Releases Second Annual Report On Value GPOs Deliver To The Healthcare Supply Chain

WASHINGTON, Aug. 21, 2018 /PRNewswire/ -- The Healthcare Supply Chain Association (HSCA), which represents the nation's leading healthcare group purchasing organizations (GPOs), today released its second annual report on the value that GPOs deliver to the healthcare system. The report, which was based on a survey of HSCA member GPOs, found that GPOs continue to deliver critical cost savings to providers, increase competition and transparency in the market, and are helping to propel improvements to the overall healthcare system.

"From helping achieve critical cost savings for virtually all of America's 7,000+ hospitals and other healthcare facilities to facilitating communities of knowledge to share best supply chain practices, healthcare group purchasing organizations remain critical partners to healthcare providers. GPOs deliver critical cost savings that allow healthcare providers to focus on their core mission: providing first-class patient care," said HSCA President and CEO Todd Ebert, R.Ph. "The HSCA Annual Value Report confirms what hospitals, healthcare providers, suppliers and policymakers see every day: GPOs reduce healthcare costs, increase competition, drive transparency, visibility and predictability, propel health processes and system transformation, and add value to suppliers."

GPOs deliver savings for healthcare providers, Medicare and Medicaid, patients, and taxpayers by creating efficiencies and implementing best practices.

HSCA Annual Value Report findings include:

    --  GPOs Reduce Costs. GPOs are projected to save the healthcare system
        between $392.2 and $864.4 billion over a ten-year period, save their
        customers an average of 10-18% across most expense categories
    --  GPOs Increase Competition. GPOs and the healthcare organizations they
        serve operate in a voluntary environment. Most hospitals, for example,
        work with an average of two to four GPOs, and are free not to use GPO
        services at all. The flexibility to use or not use GPOs drives
        competition, innovation and lowers costs, not only within the GPO
        sectors, but in the healthcare system at large.
    --  GPOs Drive Transparency. Given their direct line of sight across an
        immense span of products and services, GPOs provide efficiencies,
        predictability and context to purchasing and supply decisions.
    --  GPOs Support New and Innovative Technologies. GPOs actively work with
        their members to identify, evaluate, and contract for new and innovative
        healthcare technologies.
    --  Propel Health Process and System Transformation. By developing and
        sharing best practices, GPOs replicate and share success with all
        customers, creating "Communities of Knowledge."
    --  GPOs Add Value to Suppliers. GPOs help develop and build supplier and
        customer relations and lower the cost of sales through greater
        efficiencies. They also enhance supplier credibility by providing data
        and information, growth opportunities, education and collaboration.
    --  GPOs are on the Front Lines of Key Health Trends and Challenges. The
        healthcare industry is complicated, fast-moving and dependent on a wide
        range of external dynamics. GPOs were on the front lines of helping
        providers confront several key trends and challenges in 2017, including:
        --  Emergency Preparedness: GPOs are an invaluable partner for a
            healthcare organization's emergency preparedness efforts. GPOs help
            members prepare, respond and rebuild after manmade or natural
            disasters;
        --  Cybersecurity: Advances in information technology and medical
            devices, and increasing interoperability of information systems,
            devices and services are improving patient care. However, medical
            devices and services are vulnerable to cybersecurity threats that
            could jeopardize patient health, safety and privacy. GPOs bring a
            unique line of sight over the entire healthcare supply chain that
            allows them to bring innovative products and services to patients,
            while simultaneously helping providers confront 21(st) century cyber
            threats;
        --  Managing Drug Utilization: In recent years there have been numerous
            high-profile reports of inadequate supplies of generic drugs that
            have served as the standard of care for some diseases. GPOs offer a
            portfolio of solutions to help clients manage price changes and
            tackle drug utilization - issues closely connected to drug
            shortages. One of the most important offerings is rapid and reliable
            communication between manufacturers and providers. Additional
            solutions include auto-substitution, failure-to-supply programs,
            private label (products and services manufactured or provided by one
            company for offer under another company's brand), as well as spend
            management and budget development technology;
        --  Healthcare Associated Infections: Healthcare-associated infections
            (HAIs) are infections a patient might get when receiving medical
            treatment in a hospital or other healthcare facility. GPOs offer a
            range of programs that help their member organizations prevent HAIs,
            including convening performance improvement collaboratives to focus
            on early recognition and intervention;
        --  Value-Based Purchasing: GPOs play a unique role in assisting both
            suppliers and healthcare organizations in responding to the
            opportunity VBP presents. GPOs are able to help organizations
            establish more strategic purchasing practices that connect total
            costs and patient outcomes with financial reimbursements.

"While cost-savings and delivering the best products at the best value remain central to the GPO core mission, hospitals and healthcare providers are increasingly relying on GPOs for a broad range of services integral to cost-effective patient outcomes. GPOs are expanding their offerings to meet evolving hospital and provider needs, including data analysis and benchmarking, market research, innovative technology integration, infection control, electronic product tracing, and the development and facilitation of communities of knowledge among healthcare providers and supply chain experts to share best practices" added Ebert.

For the full HSCA Annual Value Report, visit our website.

About the Healthcare Supply Chain Association (HSCA)
The Healthcare Supply Chain Association (HSCA) represents the nation's leading healthcare group purchasing organizations (GPOs), which are critical cost-savings partners to America's hospitals, nursing homes, nursing home pharmacies, clinics, home healthcare providers and surgery centers. GPOs deliver billions in savings annually to healthcare providers, Medicare and Medicaid, and taxpayers. HSCA and its member GPOs are committed to delivering the best products at the best value to healthcare providers, to increasing competition and innovation in the market, and to being supply chain leaders in transparency and accountability. For more information, visit www.supplychainassociation.org. Follow HSCA on Twitter @HSCA.

Media Contact:
Jordan Nachbar
202-568-8986

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SOURCE Healthcare Supply Chain Association