Hands On or Off. Have It Your Way with GPO Contracts

Self-Serve Analytics and Customer-Driven Contracts

Provista customers can take advantage of a 24/7 self-serve portal that shares purchase histories via dashboards. This allows all customers to review their contracts for potential savings, comparisons and visibility.

Bottom line—companies purchase products and services via group purchasing organizations (GPOs) because of their low pricing. The contracts offer industry-leading pricing with reputable suppliers in addition to ironclad terms and conditions that protect customers. Some customers are very involved in contract selection and know exactly which contracts they want and from which suppliers. Other customers want their GPO, or supply chain partner, to make recommendations and help select contracts based on certain criteria. Either way, customers benefit from expertise, discounts, services and analytics that they would be unable to access on their own.

Supply Chain Partners Take the Lead in Customer Contracts

The more customers engage with GPOs, the more savings, efficiencies and value they can expect. Customers that take a “hands-off” approach to selecting contracts put their GPO in the driver’s seat to identify those that are most appropriate and beneficial. With their knowledge and experience, GPOs can recommend contracts to meet a customer’s budget, business and clinical needs.

What to Know

Whether customers pick their own contracts or rely on a group purchasing organization (GPO) expertise, they receive competitive contracts, elevated customer service and analytic solutions. All customers, regardless of commitment level, benefit from working with a GPO.

For example, Provista has the pharmaceutical expertise to recommend money-saving generics instead of more expensive branded drugs. Some supply chain partners can also perform a comparative analysis on contracts (see figure). This identifies:

  • Cost savings by comparing a customer’s current contracts to the GPO contract pricing.
  • Product or pharmaceutical substitutions that deliver a cost savings.
  • Opportunities for private label goods that offer a lower price.

Analytics that Drive Implementation and Savings



A comparative analysis compares a customer’s current contracts to the GPO contract portfolio to identify like contracts and substitution opportunities to drive savings.

Customers that have flexibility in choosing products and services, and aren’t stuck on specific suppliers, can oftentimes find savings by switching contracts without compromising quality. That’s not always possible, however, because healthcare workers may prefer a certain brand. For example, some physicians like a specific brand of gloves. Even if a cheaper alternative is available, they’re willing to pay more for the gloves they like. In this case, a GPO may have a private label offering made by the same manufacturer, which gives the clinic the same gloves at a lower cost. 

Group Purchasing Organizations Work Behind the Scenes

Some “hands on” organizations know exactly which contracts they want to leverage. They partner with a GPO simply to access the low pricing. Even these customers, which are not looking for contract recommendations, still benefit from the enhanced services and benefits GPOs provide.

GPOs are always working behind the scenes on customers’ behalf, whether or not customers want to use their expertise. For instance, Provista makes product recommendations and offers procurement services even if customers want to pick contracts themselves. The insights highlight the potential savings so organizations have the information available when making decisions.

Sometimes these customers end up switching contracts based on the supply chain partner’s recommendations and data analytics. Companies know that the more data-driven they are, the more successful they will be across all areas of procurement.

GPO Value Extends Beyond Standard Contracts

A supply chain partner like Provista has a deep portfolio of contracts that customers may not know about, but they should be using. Customers often think of their GPOs for med-surge items, but contracts are also available for most other products and services ranging from IT services to staffing, and capital equipment and construction services to purchased services like elevator maintenance.

As the leading GPO in the non-acute market, Provista also offers custom contracts to better meet customers’ unique needs. Custom contracts are created when a gap is identified across customers’ industries or for individual customers that meet a certain spend threshold. A dedicated custom contracting team works with Provista contracting partner Vizient® to leverage the nation’s largest contract portfolio. The contracts are then customized by the Provista team to meet the specific needs of non-acute facilities as well as entertainment and hospitality customers.

GPOs also help companies by regularly providing business insights and information. For example, Provista emails customers product and pharmacy updates, limited time supplier promotions, and legislative news. This information, coupled with industry-leading savings across a wide range of contracts, enables customers to reach new levels of business success.

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