Start of Main Content

Group Purchasing Organization (GPO)

What is a group purchasing organization (GPO)?

Group purchasing organizations (GPOs) are entities that oversee buying for healthcare providers. GPOs collaborate and negotiate with manufacturers, distributors and suppliers to secure services and supplies at the best price. Recently, GPOs have also begun to focus on payment, procurement and outcomes.    

Why are group purchasing organizations (GPOs) important to healthcare?

Group purchasing organizations are important to healthcare because they navigate the complex supply chain to acquire and allocate necessary medical supplies for healthcare organizations. GPOs also enhance the quality of care and efficiency in healthcare organizations.