A group purchasing organization (GPO) helps healthcare providers such as hospital systems achieve savings and efficiencies by aggregating purchase volumes. GPOs leverage collective spend to negotiate discounts with manufacturers, distributors, and other suppliers.
A data partner serves as a complementary function to GPO relationships, empowering supply chains with data and tools to work faster, smarter and with more visibility.
This page offers guidance for health systems that want to add Data-as-a-Service and other sourcing solutions alongside their GPO relationships.
GPOs are primarily designed for powerful negotiations on behalf of their members and to provide access to standardized contracts. Their strengths lie in:
However, the relationship between GPOs and healthcare organizations can often be passive. Decisions may be made for the health system, rather than in collaboration, leaving room for improvement.
While GPOs offer valuable services to healthcare systems, there are notable gaps in their offerings:
Moreover, GPO benchmarks can have limited value since they often rely on a pool of providers confined to their membership. This creates a narrow view of the market, making it difficult for health systems to explore “what-if” scenarios or to evaluate pricing trends on-demand.
Healthcare organizations that place too much reliance on a single GPO may inadvertently leave money on the table for certain purchases. Complete commitment to GPO agreements can reduce a health system's bargaining power and limit their ability to adapt to new market conditions or products.
In certain scenarios—such as natural disasters or pandemics—hospitals may need to explore alternative suppliers. Additionally, unforeseen cost increases due to tariffs or government policies can drive the need for diversified supplier relationships.
Yet, GPO-using health systems often face difficulties in identifying alternative suppliers due to commitment- or volume-based agreements tied to their GPO contracts. This can hinder their ability to pivot quickly in response to changing market demands.
Understanding alternative sourcing channels during shortages or supply chain interruptions is critical for long-term resilience. By maintaining flexibility and not locking solely into GPO agreements, health systems can foster stronger, more direct supplier relationships. This adaptability is essential during periods of disruption or uncertainty and can provide significant benefits in leveraging market conditions.
One strategy health systems can adopt is moving toward a self-contracting model. However, this approach is often only feasible for the largest organizations due to the staffing and resource requirements. At a minimum, organizations should consider negotiating their medical device agreements at the local level to maintain greater control.
For smaller to mid-sized integrated delivery networks (IDNs), it often makes sense to rely on national and regional GPOs for standard medical and surgical agreements. However, when it comes to more costly medical devices, partnering with a data management and spend solutions provider like Curvo can offer significant advantages.
Curvo works collaboratively with regional GPOs and regional purchasing collaboratives (RPCs) to enhance their negotiation strategies and overall go-to-market approaches. This synergy strengthens the decision-making framework within healthcare systems.
Example:
A large healthcare organization identified gaps in their GPO services while collaborating with Curvo. They found that their GPO lacked essential categorizations for frequently needed products, prompting Curvo to create custom enrichment solutions.
As one Curvo representative noted, “When health systems are armed with proper analytics, they can conduct successful sourcing engagements. This means negotiating favorable agreements directly with suppliers based on accurate data.”
Curvo stands apart from the typical GPO by serving as a data and technology partner with unbiased and accurate clinical product insights. The GPO-agnostic spend management technology is enhanced by knowledgeable sourcing services that drive success during sourcing events.
Curvo data and sourcing solutions empower supply chain teams to work more effectively. Sourcing teams can use self-service analytics with direct access to clinical and pricing data, leading to quicker insights and sourcing decisions without the wait typically associated with GPO-related information.
One notable advantage of working with Curvo is the GIC system for medical devices and other clinical products. This resource enables data-driven, apples-to-apples comparisons across manufacturers, facilitating smarter sourcing and standardization decisions that align with current medical practices.
The future of the healthcare supply chain isn’t about replacing existing partners; it’s about empowering internal teams to become more strategic. Curvo enhances the visibility, control, and flexibility necessary to amplify what a GPO already provides.
Health systems don’t have to choose exclusively between a data and services partner like Curvo and their existing GPO or RPC arrangements. Instead, Curvo amplifies the value of GPO memberships, allowing organizations to leverage both tools and data.
It’s becoming common for healthcare providers to contract directly with medical device suppliers for local agreements that lower costs. Organizations that engage in direct negotiations benefit significantly from robust spend and utilization analytics, which enrich their negotiation positions.
Curvo provides GPO-agnostic data and benchmarks, so supply chains can approach contract negotiations more confidently. “We consider some of the top GPOs our competitors, but we also work with local and regional purchasing collaboratives,” explained a Curvo representative. “Our data pool reflects the full spectrum of organizations—not just those tied to one GPO.”
Combining GPO strength with Curvo intelligent data solutions results in a comprehensive sourcing powerhouse that addresses the challenges health systems face. Curvo streamlines workflows and simplifies complex rebate structures while offering efficient integration with existing systems. Advanced analytics provide real-time insights into spending patterns, helping to prevent missed rebates. This holistic solution automates manual processes, enabling teams to concentrate on strategic decision-making and nurturing supplier relationships—ultimately driving better outcomes.
For more information about how Curvo can empower your organization, just reach to schedule some time.