GPO

Question 1

What is a GPO

Answer 1

GPOs use volume as leverage to negotiate discounts with vendors

Negotiate contracts with vendors on behalf of members

Question 2

what drives contract pricing

Answer 2

volume commitment

Question 3

whats the difference between regional and national GPO’s

Answer 3

Regional GPOs have providers as voting members

Local familiarity, culture, local leadership helps build up regional GPOS

contract directly with smal supplies and rural hospitals

Question 4

4 services GPOS provide

Answer 4

provide contracted services to providers

provide consulting serives to members

provider service to venders (slaes and marketing )

evaluate new products for vendors

Question 5

trends in GPO

Answer 5

self contracting

custom contracting (when hspital reach highest level and wants better deal)

regional GPOS

ACO;s help GPOs focus on value

Question 6

what are legal problems for GPOs

Answer 6

CAF

exmempt from ant competitive laws