Healthcare contracting and purchasing trends
Healthcare Medical Pharmaceutical Directory.com
Group Purchasing Organizations - GPOs 
Market Trends:
  • Clients seeking more value; competing with trade partners and health system-based buying groups
  • Operating under greater Federal government scutiny for pricing, rebates, other business practices
  • Change in marketing strategy required due to threat posed by Amazon as it ramps up its healthcare initiatives


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Healthcare and Medical Group Purchasing Organization Overview

There are over 300 group purchasing organizations engaging the healthcare industry, listed here are the market leaders. GPOs are competitively challenged by the increasing strength and IT sophistication of distributors and wholesalers who have formed their own GPOs and specialized purchasing programs designed to reinforce customer loyalty and contract compliance.  New business models spanning accountable care organizations, integrated delivery networks, satellite clinics, specialized medical centers and other point-of-care changes impact how purchasing, procurement and supply chain administration is conducted. This also includes the largest commercial payer in the nation, UnitedHealth Group, acquiring urgent care, surgical care and other healthcare provider organizations as it expands and diversifies it business model beyond that of health insurance and risk management.

The GPO sector is undergoing significant changes. Consolidation is reducing broad-based competition between them. Regionalized/specialized GPOs have been developed focusing on specific sectors of care and the products required within them.  Medical suppliers, wholesalers and distributors armed with increasingly sophisticated contract and inventory management software/IT systems, have recognized these niche opportunities as well and are engaging them directly as well as via GPO contract arrangements.  Digital commercial platforms / e-commerce business models lend themselves readily to comparison shopping, transparent pricing, re-ordering and other attributes which can support or compete with the conventional GPO business model.

Amazon, Amazon Cloud / Amazon Web Services ( AWS), PillPack and more in healthcare

Moving forward in 2019 and beyond, Amazon is a paramount concern across multiple healthcare industry sectors.  Their e-commerce, digital marketing, customer engagement and supply chain attributes are proven assets.  Amazon already carries a substantial variety of conventional consumer healthcare products and has quietly built up a significantly large portfolio of medical practice products.  Given their track record of successfully entering "set in their ways" well-established market sectors and re-writing the rules of engagement, GPOs, healthcare distributors / wholesalers / suppliers and other purchasing / supply chain entities are understandably concerned at the potential impact Amazon may have as a competitor. As their healthcare strategy unfolds, Amazon has deep potential to disrupt and reset how healthcare provider organizations have traditionally contracted and procured product from supply chain and manufacturer organizations.
... As Amazon expands into healthcare, GPOs and their trade business partners may be at risk; read the articles below about Amazon's healthcare marketing initiatives ...
... This is a list of leading Healthcare Group Purchasing Organizations (GPOs); scroll down for healthcare GPO market trends ...
... Group Purchasing Organizations are intertwined through a variety of healthcare entities. For pharmaceutical manufacturers, medical device companies and others, GPOs are part of the access formula to do business with hospitals, health systems, surgery centers, dialysis centers, long term care, assisted living, home infusion. Please see the resources below for market access strategies with GPOs and other industry sectors ...
hospital group purchasing organizations
...A healthcare marketing resource for pharmaceutical, medical device, technology, patient care, programs and services spanning strategy, digital marketing, trends and managed care / market access: a global community of users from 50+ nations...


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