GPOs respond to new market

June 1, 1997

Pharmaceutical Representative

Group purchasing organizations grew in numbers, consolidated and expanded services last year, according to SMG, a Chicago-based market research and consulting firm.

Group purchasing organizations grew in numbers, consolidated and expanded services last year, according to SMG, a Chicago-based market research and consulting firm.

SMG data reveals that the total number of multihospital systems and GPOs grew from 582 in 1995 to 720 in 1996.

The 20 largest "super groups" claim access to 87% of all U.S. hospitals and staffed beds - 96% of all acute care hospitals and beds. These groups offer high purchasing volumes and compliance to health care product manufacturers and distributors in exchange for contracted discounts, value-added services and other improved contract terms. In addition to the super-group mergers, smaller regional alliances are jumping on the bandwagon and actively joining with some of the national groups.

SMG said 420 groups have contracts with alternate health care sites, a 16% increase from the previous year. In addition to the increased contracts with surgery centers, health maintenance organizations and other sites, contracts for capital equipment, consulting services and equipment services are becoming increasingly common. PR