What is GPO?
A group purchasing organization (GPO) leverages the collective buying power of its members (healthcare providers) to secure discounted prices on the goods and services they need to run their businesses.
The group purchasing methodology of sourcing encourages vendors to give GPO members aggregated volume-based pricing. Most individual healthcare providers only spend a limited amount in any particular category, like office supplies or services. Because most of the time purchasing is all about volume, healthcare providers end up paying based on the fact that they only have limited volumes to negotiate pricing.
Joining a group purchasing organization (GPO) allows you to leverage the collective buying power of a group of healthcare provider members, meaning you can take advantage of those larger discounts without actually purchasing more. The hard negotiation is already done by the GPO and the negotiated contracts with top vendors are already in place. All you have to do is guide your procurement team, select your contracted items based on requirements and start saving.
Is GPO a new concept?
No, in fact GPOs has been around for many years & has proven successful in many countries around the world. The first group purchasing organization was established in the healthcare industry way back in 1910. Growth was relatively slow at first, with the number of healthcare GPOs growing to only 10 by 1962.
In the United States, medicaid and medicare stimulated the growth in the number of Group purchasing organizations to a total of 40 by 1974. That number almost tripled between 1974 and 1977 as medical costs skyrocketed.
Soon after, the GPO model caught on in other industry verticals like hospitality, hotels, dental and veterinarian segments. Group purchasing organizations succeed in reducing procurement costs by aggregating the demand for supplies and services leveraging buying power to deliver better volume based pricing.
What does Bridge Medical GPO (BMGP) do?
BMGP partners with the best medical suppliers to provide healthcare providers access to unbeatable savings on products, services and equipment, enabling new win –win relationships on a path for procurement success.
BMGP leverages the aggregated buying power of their healthcare provider members to obtain volume based pricing from suppliers and vendors. Any healthcare provider can join BMGP and take advantage of a “strength in numbers aggregated volume” concept when purchasing products, services and equipment.
When you join BMGP, your collective buying power increases significantly, which means you join forces with a group of other healthcare providers to leverage the GPO size in exchange for supply chain optimization which also includes sharper pricing. BMGP has strong relationships with the world’s top medical suppliers and vendors. BMGP serves as the gatekeeper, connecting our members to the best vendor contracts available in the UAE.
Is BMGP a supplier?
No, BMGP is not a supplier. We do not compete or replace suppliers & vendors. As a GPO, we are an industry focused technology and solutions provider, focused on delivering speed to value for our healthcare provider members.
What are the benefits of joining BMGP?
Our cutting-edge methodology & best in class technologies will provide our members with enhanced data driven management and decision-making capabilities that will improve their procurement & supply chain capabilities.
How many members does BMGP have currently?
BMGP is in advanced discussions with several major healthcare provider groups and anticipates managing 25-30% of UAE market volumes in 2022.
In which countries is BMGP present?
BMGP is currently present in the UAE. Our plan is to expand further to the rest of the Middle East region.
How do I register with BMGP?
Registration is quick and easy, call our customer service centre at 800 BMGPO or email us at email@example.com to start the registration process.
How do I access the platform once I become a member/partner?
Visit our website www.bmgp.com and click on the login section.
How can I get support? Who do I contact?
Email firstname.lastname@example.org or call our customer service centre on 800 BMGPO
Why should my healthcare organization become a member of BMGP if I already have contracts with suppliers & vendors?
Bridge Medical GPO aggregates the volumes of its members to deliver better competitive pricing. Our members have access to advanced spend analytics dashboards supporting informed, data-driven decision making and have access to updated price reports. You can compare your pricing to the average in-market and that of other healthcare providers.
How much can my healthcare organization save if we become a member of BMGP?
Being a member can help you obtain savings (sometimes over 20%) on medical supplies, consumables, devices and services & will deliver an incredible improvement in your bottom-line profitability, especially during difficult economic times.
Delivering cost savings is critical, however beyond that, BMGP will unlock additional savings in terms of supply chain optimization. Procurement outsourcing can span many activities, from strategic to transactional, as a way to secure lower cost prices and create value.
This means you’re able to eliminate the lengthy RFP process and the time it takes to evaluate a supplier in order to focus on other sourcing activities including identifying savings. Most importantly, membership with BMGP can provide your procurement team with something they may be lacking – access to supply chain and procurement experts that can provide advice and integrate leading best practices into your business.
What products does BMGP have on the platform?
BMGP will provide A-Z of a healthcare providers procurement requirements. From products, equipment to services.
How are products within the BMGP portfolio distributed?
BMGP has multiple supply options based on the needs & requirements of the specific healthcare provider.
What is the healthcare provider membership fee for joining BMGP?
BMGP offers custom memberships to meet the unique needs of individual provider facilities & health systems. All memberships have a savings guarantee – if you don’t save, you don’t pay.
Why should my supplier organization join BMGP if I already have existing business with healthcare providers?
BMGP will provide you with open access to new customers, new product opportunities and market share growth.
Our vendor partners enjoy multiple benefits including improved operating efficiencies, increased profitability and improved cash flows, access to our leading software technology and supply chain leading practices.
How will BMGP increase supplier vendor sales among current hospitals?
If you already supply a certain product to a hospital, it may not necessarily mean that you have 100% market share. The hospital could be buying from other sources to meet their entire volume requirements. We will help you identify those opportunities and grow your market share and total business.
How will BMGP manage the continuous fluctuation of prices caused by the pandemic or other external market dynamics?
BMGP will focus on smoothing supply and price fluctuations through aggregated volume management. Our committed contracted volumes allow for better forecasting models based on hard data to ensure that you can secure stable pricing. We can assist you with supplier/manufacturer discussions to achieve this.
Does BMGP purchase from suppliers & vendors?
No, BMGP does not purchase from suppliers & vendors. BMGP will not compete or replace vendors, but rather enhance their performance and market share allowing them to grow demand for the products they provide in their portfolio.
How will BMGP manage the supply logistics?
BMGP provides vendors additional cost savings and better forecasting through their 3PL warehouse and distribution model. Save on warehouse and distribution costs, improve customer satisfaction, and your margins by reducing these OPEX costs.
Who will pay the suppliers & vendors for delivered goods & services?
BMGP provides members & vendors with enhanced Purchase Order and Invoice processing services that improve vendor fill rates and reduce invoice and payment processing costs. The healthcare provider member is responsible for paying their vendor’s invoices.
What is the vendor price/fee for joining BMGP?
There is no charge for registering as a vendor. A nominal administration fee is applied to the volume you sell through our platform.