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Oncologists make "large purchases" every day, so it is important to acquire goods at the best possible price. This usually leads us to purchase from a variety of sources and contracts. This approach works for the short-term but won't get the pricing and the Members to the next level. The real value of a GPO is its ability to sway market share. |
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What is the "Real" Value of a GPO?
The concept of group purchasing isn't new, nor is it exclusive to health care. The growth of the large, retail "wholesale membership clubs" demonstrate that even lay people understand the value of bulk purchasing and most importantly, its effect on price. The demise of the corner drug store is a result of group purchasing. Large pharmacy chains purchase goods in volumes unachievable by an independent operation. As a result the chains are able to negotiate lower contracts with insurance companies, and in many cases get exclusive agreements for a specific geographic area. |
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| The value of acquiring goods at a discount is obvious. Most of us always look for a bargain and make an attempt to get the "best price" available. This is especially true when we make large purchases like appliances and cars. |
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| Oncologists make "large purchases" every day, so it is important to acquire goods at the best possible price. This usually leads us to purchase from a variety of sources and contracts. This approach works for the short-term but won't get the pricing and the Members to the next level. The real value of a GPO is its ability to sway market share. |
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| As a Member of Oncology Associates, we encourage you to comply with our contracts. Compliance is essential in helping get OA and its members to the next level. When the threat of losing an entire group of physicians to a competitive and therapeutically equivalent product is real to a manufacturer, the ability to negotiate better agreements is magnified exponentially. We want OA members to have the power to sway market share in any direction needed to improve opportunities for the entire group. This is the real value of Oncology Associates GPO! |
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