If you’re somewhat unfamiliar with your supply chain, here are some things that might surprise you:
- Operating an underproductive supply chain results in overspending.
- When your facility or system purchases supplies and equipment from a GPO, you pay a contracted, discounted price because the purchasing power is aggregated among thousands of surgery centers, physician offices, hospitals and IDNs.
- Spending months researching big-ticket pieces of equipment and then negotiating the price only to receive retail pricing results in overspend. A GPO can ensure your receive the best value that considers the total cost of ownership — pricing, technology warranty, service and upgrades.
- Receiving quotes from vendors on capital equipment without verifying accuracy is dangerous. At Broadlane, we have found vendor quotes are wrong nearly 60 percent of the time.
If you are wondering what you can do to improve your supply chain, selecting a GPO is probably the most effective and efficient method. I encourage you to examine all GPOs and supply chain alternatives to help deliver the best results for you. Some things to consider when making your selection include:
- How can you make sure the contracted supplies, equipment and services take ambulatory surgery center needs into account? Investigate whether your GPO has an advisory committee that includes ambulatory clients.
- Does the GPO determine contract pricing through volume commitment tiers? If the GPO requires the surgery center to achieve a certain volume of pricing to achieve lower prices, this can be a disadvantage, since large IDNs and hospitals obviously purchase a higher volume to achieve a lower contract unit price.
- How will you navigate purchasing through the GPO? Some GPOs offer dedicated account service for ambulatory clients. This helps when setting up the contract portfolio and learning about other special savings and services.
- Will you have access to special bulk or group buy opportunities with other GPO clients to achieve special pricing when purchasing large quantities? Many GPOs offer these opportunities to help lower supply and equipment prices even further.
- Can you buy capital medical equipment at a discounted price? Purchasing expensive equipment through your GPO oftentimes can present huge savings — the same savings a large IDN would receive.
- Will your GPO help you standardize and maximize discounts? Using different vendors for commodity items like alcohol preps, exam gloves and wound care is not efficient. Maximizing your discounts by standardization can deliver immediate, sustainable savings.
One final thought to leave you with is the change in procedure reimbursements and the rising costs of healthcare and supplies. To ensure the supplies and equipment you’re purchasing fit within new reimbursement guidelines, it is important to work closely with your GPO and their knowledge regarding purchasing and reimbursement.
David Ricker is president and CEO of Broadlane.