Healthcare Value Analysis & Utilization Management Magazine - Volume 5 Issue 2

Page 12

Utilization Management

Robert W. Yokl

Why You Need to Stop Wasting Time and Money by Starting a Successful Supply Utilization Management Program Now

Do you believe that Group Purchasing Organizations (GPOs) save big dollars for hospitals, systems, and IDNs across the country? That is a crazy question to ask but believe it or not, 20 years ago there were many organizations that did not belong to a single group purchasing organization let alone committing 60% to 85% of their volume to GPOs as we see today. Why did organizations not believe in GPOs and the savings they could bring about? It comes down to the maturity of the GPO organizations and more importantly, the commitment of hospitals, systems, and IDNs to the use of GPOs as their avenue to gain the best prices. But with any “new thing� it takes time for its adoption as a best practice. It would be silly to think that a hospital, system, or IDN would not belong to a GPO today, but it took over 20 years to get to where we are now. Volume 5/Issue 1

Healthcare Value Analysis & Utilization Management Magazine

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