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Study to Document Billions in Annual Health Care Savings From 'Group Purchasing Organizations' That Could Play Bigger Role in Obama Health Care Reform
Date:4/27/2009

... April 29, 2009 News Advisory ...

Survey of More than 420 Hospitals Show Major Medical Spending Cuts Already Being Achieved, Reducing Cost Per Each Discharged Patient by Several Hundred Dollars.

WASHINGTON, April 27 /PRNewswire-USNewswire/ -- As federal policy makers look for new ways to squeeze more out of every dollar spent on health care, one of the best solutions is already at hand: "group purchasing organizations" (GPOs). That's according to a major new report to be released during a live, national phone-based news conference (with full Q&A) at 1 p.m. EDT on April 29, 2009.

The study is authored by Dr. Eugene S. Schneller, professor, Arizona State University and principal, Health Care Sector Advances, Inc. Based on a detailed survey of 28 U.S. health care systems representing 429 hospitals, Dr. Schneller quantifies the total U.S. health care cost savings associated with GPOs by measuring such key factors as total savings per hospital and total savings per discharged patient. The report's findings are particularly relevant now as Congress and the Obama Administration seek to achieve greater health care savings through an emphasis on increased efficiencies.

Group purchasing organizations are large national organizations and smaller regional entities that achieve health care cost savings by aggregating their health care buying volume and then using that leverage to negotiate discounts with manufacturers, distributors and other vendors. GPOs negotiate on behalf of hospitals and affiliated health care providers to contract for the best value in their purchase of supplies and services.

Dr. Schneller is Dean's Council of 100 Distinguished Scholars at Arizona State University School of Health Administration and Policy where he is co-director of the Health Sector Supply Chain Research Consortium. Dr.
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SOURCE Dr. Eugene S. Schneller, Arizona State University; and Health Care Sector Advances, Inc.
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