Save money: Switch to a group purchasing organization

By Mgma In_Practice posted 02-27-2009 13:02

Like

By Caren Baginski

When medical groups use a group purchasing organization (GPO) to obtain supplies, the savings remind me of GEICO's favorite adage: "15 minutes can save you 15 percent or more on car insurance."

While it takes more than 15 minutes to reap the benefits of a GPO, your savings will be well worth the wait. MGMA member Ross D. Rohde, MBA, CMPE, ACSW, is COO of Atlanta Women's Health Group and can speak to how a GPO helps his organization control costs.

By going through a GPO, and "purchasing the exact same name brands and supply volume, we are saving between $4,000-5,000 per month per clinic site due to renegotiated pricing… with Physician Sales and Service, our medical supply vendor," he says.

Those figures are even more meaningful during an economic recession. "In this day and age, it is really worth checking out what GPOs can do for you to see if you can also experience some significant savings," says Rohde.

As an MGMA member you have access to MGMA AdminiServe, the Association's preferred supplier program. Partner vendors have been carefully screened by a member panel for quality, service and value, including Amerinet, which is the vendor used by the Atlanta Women's Health Group. MGMA estimates you'll see an average savings of 18 percent on most medical products with Amerinet – plus, the GPO waives your $500 startup fee.

Rohde says Amerinet also can provide, "a review of your office supplies, telephone expenses, laboratory expenses, transcription services and almost any vendor-supplied product," so your whole organization can enjoy a cost-cutting makeover without sacrificing quality.

Caren Baginski is MGMA's Web content writer/editor and did save more than 15 percent when she switched to GEICO last year.

-------
Next entry
Back to the blog

0 comments

72 views

Permalink

https://community.mgma.com/blogs/mgma-in-practice/2009/02/27/save-money-switch-to-a-group-purchasing-organization

Blogs