Are you a member of a GPO? What was your process for signing up? Did you just sign the paperwork to enroll in the GPO and that was it? Seemed easy, but did you know you are not getting the most out of your GPO membership?
Most medical facilities who join a Group Purchasing Organization do not realize that most GPO contracts have a tiering system. GPO tier pricing is the key to maximizing your discounts. Tiering systems allow for different level pricing per item on a single contract. In other words, one single product may have five different prices under one GPO contract. Most medical facilities just enroll in the bottom (entry level) tier. Those medical facilities are missing out on a ton of savings. How much? In some scenarios, the different between tier 1 (entry level) and tier two is 65%.
Qualifying for the tiers depends on the GPO contract. Every vendor has different qualifications. Some vendors want an annual dollar volume in order to qualify for a higher tier while others want brand loyalty. How can you qualify? Be sure to talk with your GPO about what you need to do to qualify for a higher tier.
If you are a member of Veira, we take care of GPO tier pricing upfront so you start saving the maximum right out of the gate. Not a member of Veira? Enroll today for free and let us complete a tier analysis report for you.