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Brendon Nafziger, DOTmed News Associate Editor | June 02, 2011
"In thinking about total purchasing cost, [imagine] a friend of yours has told you that Sam's Club has a great deal on some product that you consume a lot of. In my case, it might be wine," Schwarz joked. "So do I immediately jump into my car and drive to Sam's Club? If it's next door, yes, but not if it's in the next town."
Schwarz speculated that with the addition of other GPOs, as in the real world, purchasing costs could be driven down further. The study does suggest some larger providers might not experience savings with the GPO, but Schwarz said that large providers are often part-owners of GPOs, so they could receive share-backs, which are not accounted for in the study.
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"This is one of a growing body of independent studies that support group purchasing organizations," Todd Ebert, President & CEO, Amerinet, Inc. and Chairman of the HIGPA Board of Directors, said in a call with reporters.
The study, "The Impact of Group Purchasing Organizations on Healthcare-Product Supply Chains," will be published in a forthcoming issue of Manufacturing & Service Operations Management.
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