Five Benefits Of Joining A GPO


The value of a GPO is impossible to deny, especially in the healthcare sector, where hospitals want to have a leaner procurement and sourcing team while also saving money. Group Purchasing Organizations can act as an extension of your team, identifying cost-cutting opportunities.

A GPO leverages the spending of its healthcare provider members to achieve price and service levels that are superior to what individual hospitals can achieve on their own. Supplier vendors benefit from the high volume and efficient competitive bid process that comes with multiple contract awards. The Group Purchasing model, as a result of these outcomes, can provide incentives to both healthcare providers and suppliers. 

Are you unsure whether a GPO partnership is right for you? Check out these five advantages of becoming a member:

1. A GPO allows you to save money

A study by Healthcare Supply Chain Association (HSCA) pegged that GPOs saved over $34 Billion annually in the US healthcare system. On an average, members saved anywhere between 10-18% on medical products and services.

So how do group purchasing organizations manage to save so much for its members? 

The GPO process is designed in a way that helps healthcare providers save on costs and improve the value of services. It works by aggregating the collective purchasing power of healthcare organizations to negotiate discounts on products and services. Aggregated pricing is one of the most powerful advantages of GPO. This means that even small clinics potentially have the same purchasing power and contracts as larger hospitals. 

This can help any healthcare entity’s budget because the money saved by using a GPO can be spent elsewhere. Furthermore, GPO contracts are frequently broad in scope, covering the entire category offering of the awarded supplier. Contracts are non-exclusive, with no mandatory contact commitments, allowing healthcare providers to choose the contracts that best meet their needs.

2. A GPO saves you time

You are not alone if your organization is short on resources and personnel. It’s not uncommon to manage hundreds of contracts, each with its own lengthy solicitation and review process. Even a simple contract can take months to complete. One of the benefits of GPO is that it helps relieve pressure on purchasing departments by reducing the number of hours spent on the solicitation process and the ongoing maintenance of individual contracts. A GPO will simplify your process. Group purchasing organization healthcare set up leads to increased efficiency for its members. It streamlines the procurement processes and makes it easier for healthcare providers to purchase the supplies and equipment needed. When a healthcare organization joins a Group Purchasing Organization, it no longer has to track hundreds of supplier contracts. Instead, the GPO manages all contracts. In the long run, this streamlined approach can save time and money.

3. A GPO will demonstrate compliance

A GPO’s top priority should be compliance. Nothing else matters if you don’t comply.  Medical group purchasing organizations help its members to comply with local rules and regulations. To ensure that their agreements are fair, open, and transparent, a GPO will hire compliance, legal, and contract experts who help healthcare providers meet regulatory obligations. They also act as a portal for healthcare providers to meet their compliance obligations.

4. A GPO will assist you in obtaining long-term value

With multi-year supplier contracts, GPOs can provide long-term value. When you use a GPO to lock in pricing, you get a long-term price guarantee. A typical GPO supplier contract is three years long, with one or two year extension options. A good GPO will actively manage those contracts, conducting business reviews with suppliers and obtaining performance feedback from healthcare providers.

5. A GPO will assist you in achieving savings that go beyond price

Though the primary goal of a GPO is to provide members with the most products at the lowest possible cost, this should never be used as an excuse to overlook quality. A good GPO encourages members to collaborate with suppliers to identify qualitative as well as quantitative improvements that will provide them with best-in-class service. Healthcare providers around the world are looking for ways to reduce costs without compromising patient outcomes. One of the most effective ways to achieve this is through partnering with medical group purchasing organizations like Bridge Medical Group Purchasing. 

The GPO process allows healthcare providers to reduce their inventory holding through access to best practices in logistics & supply chain management, thus impacting their cash flow. By becoming a member of GPO, healthcare providers can avoid the wastage of medical supplies and manage their inventory more effectively. 


In conclusion, among the plenty of benefits of a GPO, it also provides a valuable solution to the challenges of procurement and sourcing. By using the buying power of its members, a Group Purchasing Organization (GPO) can negotiate better prices and service levels with medical equipment suppliers in Dubai and across the UAE than any single hospital could do on its own. Also, joining a GPO can save a lot of money, save time, ensure compliance, provide long-term value, and give you chances to improve quality. 

Like other GPOs, BMGP is dedicated to reducing Operational Expenses (OPEX) and enhance sustainability in the healthcare sector. While GPOs work to secure volume-based pricing from leading equipment suppliers and manufacturers, healthcare providers can focus on improving patient outcomes in an increasingly challenging industry. 

Furthermore, healthcare providers can benefit from the GPO’s streamlined approach to contract management and cost-cutting measures. At the same time, medical equipment suppliers in UAE can take advantage of the competitive bid process and high-volume contract awards.

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