Group purchasing is used in many industries to purchase materials and supplies. A group purchasing organization (GPO) is an entity that leverages the collective buying power of a group of organizations to obtain quality products for the best price from vendors by aggregating volume.
A common misconception is that GPOs, such as Medbuy, actually buy products and/or make the purchasing decision. In fact, our Members do. Our value and expertise is in acting as a professional, neutral facilitator of the sourcing process. This means that we:
- Work with our Members to identify the products they require to meet specific patient needs
- Risk rate every product on every RFP before it goes to market
- Engage the appropriate Member clinical/subject matter expertise
- Leverage data/spend analytics and other market information
- Aggregate our Members’ spend volume
- Oversee the RFP process, ensuring compliance with procurement laws
- Facilitate Member clinical scoring, product evaluation and award decision
- Conduct financial analysis of vendor bids
- Manage the final contract(s) and vendor relationship, resolving any issues that arise
- Operate in a transparent manner through regular and custom reporting
- Involve Members in meaningful way in the governance and oversight of our organization
Our Members can then buy the right products, for the best price, for a set term, from an approved vendor contract or pricing agreement.
Operating expenses for many GPOs, including Medbuy, are shared by the membership. Members share a portion of Medbuy's annual operating expenses on a pro rata basis based on contract purchases.