A group to discuss the healthcare supply chain and how to more effectively source reliable and sustainable... View more
A group to discuss the healthcare supply chain and how to more effectively source reliable and sustainable products, technology and services.
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Good Morning Everyone,
I was wondering if there are any Supply Chain managers in this group? I am specifically interested in learning more about why Hospitals use GPO’s. To me it is a lame excuse to hire lazy materials managers and take their decision making ability away. It is my understanding that the way GPO’s get paid is through membership fees and a % of total spend. Isn’t this a classic conflict of interest? Unless I am wrong, Hospitals use GPO’s to get preferred pricing, however they are being charge by the GPO for every dollar spent. Does a GPO really want to save the hospital money? Do they want to look for no cost alternatives? Is there any reason why a skilled Materials Manager couldn’t negotiate as good or better pricing? I would love to get some feedback and a discussion going here.
Have a Great Day!