Understanding Healthcare Group Purchasing Organizations (GPOs)

by John Strong

Barriers to new technology?

Do you have a contract with our GPO?

GPOs write contracts and negotiate contract terms. Introduction of new technology is often met with this question in supply chain because it makes life easier and perhaps easier to deny.

Talk to our GPO first

It may take 6 to 12 months to obtain reviews of innovative technology at a GPO. Suppliers need to clearly identify value. Physician trials, reviews, and testimonials are helpful. Clinical evidence a must.

Register with our vendor credentialing service

Also known as "vendor control services," companies such as GHX Vendormate® and symplr® obtain information (e.g., vaccine records) from third-party suppliers and sales reps. They conduct criminal background checks, then charge companies around $300 annually to “register” reps and require them to sign in at hospital kiosks before they can see you. It's a big expense that can present barriers for new startup companies.

The physician must be a champion

Companies with new technology beneficial to patients and cost need a clinical “champion,” internally. That’s you. Start with your department administrator and supply chain. Articulate the need, value proposition, and return on investment.

John Strong is co-founder and chief consulting officer of Access Strategy Partners Inc., working with new and innovative medical technology manufacturers to prepare and help them scale commercialization.