GROUP PURCHASING ORGANIZATIONS

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GROUP PURCHASING ORGANIZATIONS : How GPOs Reduce Healthcare Costs and Why Changing Their Funding Mechanism Would Raise Costs A Legal and Economic Analysis Dan O Brien, Jon Leibowitz, and Russell Anello Table of Contents I. Executive summary.

GPOs promote competition in the market for procurement services. Providers can choose from multiple GPOs, and they also can, and commonly do, use multiple GPOs simultaneously. Providers often own and control their GPOs, and they can also procure supplies directly from vendors. As a result, the supply procurement market is highly competitive. 3.

  Procurement