We’ve told you in the past how any medical practice can join a Group Purchasing Organization (GPO), but did you know that you can truly boost the revenue in your practice just by taking this step? GPOs help your practice by offering volume buying power through economies of scale that you wouldn’t otherwise have access to. This allows your practice to obtain the best possible prices on services and supplies that you use on a regular basis, saving you money across your supply chain. Boosting your revenue takes this conversation a step further, into understanding the value of time for services and how leveraging your GPO across practice lines provides additional benefits.
Cost savings comes in a variety of different buckets, and standardizing purchasing across multiple practices provides an additional layer of insulation against the risk of rising costs. When you and other practices in your GPO are utilizing similar products, you’re able to take advantage of favorable pricing and serious volume discounts. Not only will the discounts save you money, but having standardized sizes allows for better organization of supplies by physician or location. The potential that your purchases will not meet quality levels or expectations is also minimized, because vendors are less likely to skimp on deliveries or quality when there’s a large group order at risk.
Reducing Healthcare Costs
When the overall cost of providing healthcare to your patients is reduced, the revenue at your practice skyrockets. Having expensive staff time tied up in ordering and purchasing can be a thing of the past with a trusted and vetted partner GPO. Group purchasing organizations are tailor-made for smaller practices, so your staff time can be utilized for taking excellent care of current patients and nurturing future relationships instead of working on time-consuming and non-value added tasks.
Improving Service Levels
Patients do not want to sit around in the waiting room, trying to catch someone’s attention when they’re in need of service. Why risk having patients walk out due to poor service levels from practice staff who are wrangling a difficult vendor situation? Plus, your team will always know that the items they require to do their job will be where they’re expected — in stock, and of the quality that they expect.
The savings that your practice gains by joining a GPO is not paltry; in fact, many practice owners find that their costs drop by as much as 15 percent. This savings is recognized in a variety of ways, and across both ongoing and larger capital expenditures that go through the GPO. Larger purchases have a greater opportunity for savings, too.
At M-Scribe, we work closely with a large, national GPO to provide your practice with the best prices and service offerings available. Contact me today at 770-666-0470 to learn more about how working with a GPO can help your practice recognize more revenue while maintaining the highest quality of care and service standards. Even if you don’t think you’re eligible to join a group purchasing organization, contact me to learn more. You might be surprised — nearly all practice sizes are eligible for becoming a part of these highly-effective groups. While some practices band together to have a small amount of group purchasing power, a traditional GPO provides even greater levels of benefits. Email me to learn more at firstname.lastname@example.org.