This is tip #10 of the How To Save $80,000 Series
Join a GPO (Savings: $35,000)
Signing up with a group purchasing organization (GPO) is the best way to save money. These organizations negotiate on behalf of their members significant discounts with vendors. Most GPO’s I know offer a wide range vendors that include, office supplies, temporary staffing, tax and accounting services, billing and collections, payroll services and many, many more.
GPO’s are generally free to join and the savings are considerable. For example, if a GPO contracts with a medical supply company that offers a 15% discount, one’s savings could be around $7500 assuming the practice spends $50,000 in medical supplies a year. If one spends $100,000 the savings is around $15,000.
For a pediatric office, contracting with a GPO that has a vaccine program can be the difference between making money on vaccines or losing money on vaccines.
GlaxoSmithKline for example offers 3 to 18% savings depending on the vaccines and the quantity you order in a given quarter. Let’s say a pediatric practice spends $200,000 and the average GPO vaccine program savings is 10%; that amounts to a $20,000 in savings.
GPO’s I’m aware of:
- CCPA – Children’s Memorial
- National Discount Vaccine Alliance
- Atlantic Health Partners
- Physician’s Alliance
Our practice is affiliated with the CCPA.
What are your thoughts on GPO’s. Do you have a good recommendation?