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Last week’s State of the Union address emphasized the importance of GPOs during healthcare reform implementation and Medicare reimbursement reform. American hospitals—already operating in the midst of budget crises—will be facing even greater financial strain, and will rely on GPOs more than ever to help deliver the highest quality products at the best value.
Presidents Obama’s message of cost containment is one embraced by HIGPA and the GPO industry; after all, GPOs are cost containment. GPOs deliver billions in savings to American hospitals and the Medicare and Medicaid programs.
Recent studies indicate that GPOs will save Medicare $104 to $230 billion from 2008 to 2017, and will save Medicaid between $74.1 and $162.5 billion during the same period. In 2008 alone, GPOs generated overall savings of $29 to $64 billion for the health care system, according to one study. Of that, Medicare realized savings up to $17 billion and Medicaid saved up to $12 billion.