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According to Purdue University professors Leroy Schwarz and Joice Hu, GPOs decrease overall purchasing cost of medical goods and services for American hospitals and other providers - particularly small providers. The study, titled “The Impact of Group Purchasing Organizations on Healthcare-Product Supply Chains,” uses game theory to demonstrate that not only do GPO contract administrative fees have no impact on overall provider purchasing costs, but if GPOs were removed from the healthcare marketplace, hospitals would pay higher total purchasing costs.
HIGPA President Curtis Rooney applauded the study and stated that it is, “an excellent analysis of the cost-savings benefits that GPOs bring to the healthcare system and further validates what GPOs and virtually all of America’s 5,000+ hospitals already know – GPOs deliver the best products at the best value for American hospitals.”