How Does a Group Purchasing Organization Work?

A group purchasing organization (GPO) allows independent pharmacies, pharmacy chains, hospitals, and other health care providers to buy goods and services at better prices than are usually available to them. It does this by leveraging the combined buying power of its member pharmacies and negotiating discounts with manufacturers, distributors, and other vendors. Because of the economies of scale, every member reaps benefits similar to the largest volume purchaser.

As a GPO, MedSource’s purpose is to improve accessibility and availability of affordable, quality medication and laboratory and health supplies for health care providers and ultimately the population at large.



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