Learning More About The Largest Pharmaceutical GPO’s In The Country
“There’s power in numbers.” You’ve probably heard this phrase thousands of times and think of it as a cliché. However, this statement has never been truer particularly when it comes to the pharmaceutical industry, and it’s brought to life by group purchasing organizations or GPO’s.
Pharmaceutical GPO's allows independent pharmacies to group together and use their numbers to buy drugs at lower prices. This, in turn, helps them reduce their overheads and maximize their profits. GPO’s can even use their power to negotiate discounts from drug manufacturers and demand fair treatment and transparent prices, which can further help individual pharmacies in improving their business.
GPO’s are also greatly helpful when there are drug shortages. On their own, pharmacies have no choice but to either pay higher rates for drugs that are low on stock or quit including these drugs in their product line. But, if they’re a part of a GPO, they’ll have someone who will look for alternative drugs, secure exclusive deals with manufacturers, or even help manufacturers to look obtain raw materials and speed up the production of these drugs.
Over the years, many pharmacists have realized the importance of belonging to a group purchasing organizations, and this has resulted to the increase in the number of pharmaceutical GPO's in the country as well as to their rise in popularity. There are more or less than 600 GPO’s serving the healthcare industry, although it’s important to note that not all of them are created equal and that some of them offer better services than others.
Two of the largest GPO’s in the country are MedAssets and Novation. MedAssets had more than 500,000 affiliate beds in 2013, and it served more than 4,000 hospitals and over 120,000 non-acute healthcare providers. Novation had almost 300,000 affiliate beds in 2013 and was handling over 600 suppliers with contracts worth $49 billion, and it was named as one of the World's Most Ethical Companies in 2014. MedAssets and Novation now both belong to the same parent company Vizient, which is one of the leading healthcare services company in the U.S.
Another excellent GPO is Amerinet, which has almost 400,000 affiliate beds. Established in 1986, the company had four subsidiaries that focused on different fields like non-acute marketplace solutions and healthcare market analysis. Amerinet has rebranded itself as Intalere in 2016 and remains to be one of the leaders in the industry.
Still anther great option is PBA Health, which offers a wholesaler negotiation service called ProfitGuard. It provides a set of business intelligence tools that help you manage your purchases, maximize your rebates, and ensure you get the best possible value for your money. Many pharmacists swear by ProfitGuard, pointing out that the service has helped them greatly especially in seeking out new generic drugs and choosing those that are available at the most reasonable prices.
These are some of the largest pharmaceutical GPO's in the market. They’re definitely not the only options out there, but they’re a good place to begin particularly if you’re new to the world of group purchasing. Do your research now to see which GPO best suits your needs!