December 11, 2020

Questions To Ask When Considering a GPO

By IPN

There are thousands of NDC codes listed in the United States – by manufacturer, name and dosage. Imagine if your specialty practice had to negotiate with 50 different pharmaceutical or medical device firms on an average of five products for each company, all while taking into consideration that those specific products are safe for your patients and are manufactured under current regulations. Someone in your practice would be negotiating prices and attainable contracts for 250 products. And then ensuring that your practice can meet the terms of each contract.

Medical practices realize that self-sourcing is not an efficient strategy. How do you decide who to work with to help secure pharmaceuticals and solutions for your practice? While pricing is often a significant factor in your decision, there can be other benefits in a GPO contract – like being able to choose the products you use in your practice.

Here are some questions to consider when thinking about a relationship with a GPO:

How much does your practice spend on products, and what is your typical purchasing in a given month? And do you store a lot of product (like patient treatment drugs) within your office?
Does your practice have to commit to a certain volume?
How would the GPO handle reporting? Is it in real time or as close to real time as possible? Do you have to ask for those reports, or is there an easy way to access them?
How will the GPO communicate changes to contracts? And will the GPO typically have earliest access to new products?
What services are available to the practice beyond the contracted price? Are there any other benefits?

Ultimately, you want to create a relationship that is beneficial to your practice and continues to give you access to the treatments you need for your patients. Creating a partnership that looks out for your financial success as an independent specialty practice is our priority.

Topics:

Business performance Practice management