Choosing the right healthcare GPO (Group Purchasing Organization) can shape the future of your health system’s supply chain performance including financial outcomes, operational resilience, and clinical outcomes. During the GPO RFP process, asking the right questions ensures alignment, transparency, and long-term value.
Below is an article outline with 10 key questions health systems should consider.
1. How Flexible Are Your Contracts? — can we carve out or opt out of categories that don’t fit our needs?
Will they let you carve out or opt out of categories that don’t fit your needs? Or enable partnership with secondary GPOs?
Exclusive GPO contracts stifle your savings — they’re not designed to support a health system’s autonomy, instead enforcing rigid participation parameters. Being able to bring in secondary and tertiary GPOs gives you more flexibility and access to top-notch products in every category.
2. How Do You Quantify and Report Cost Savings — And Can You Provide Examples?
Ask GPOs to provide case studies or examples of cost savings they delivered to organizations similar to yours — along with their methodology to track and report them. This goes beyond marketing claims and demands proof of performance and transparency.
3. What Additional Value-Added Services Do You Provide?
Beyond purchasing portfolios and cost savings, some GPOs offer other solutions like consulting, purchased services, clinical transformation, supply chain insights, and integrated logistics and distribution. If you’re looking to elevate your organization’s supply chain function into a strategic driver, these solutions can help you level up.
4. How Will You Support Implementation, Clinical Integration and Ongoing Member Service?
First, determine if you want hands-on support or a GPO that simply provides contract access. Some GPOs offer levels of support and implementation, while others have a single model regardless of your needs.
Ask about their onboarding and transition processes. Determine if they offer implementation and operations support. And understand how frequently they would meet with your team to review progress and opportunities.
5. How Do You Ensure Supply Chain Resilience and Manage Shortages and Disruptions?
When supply chain disruption is constant, you must separate the proactive GPOs from the reactive ones. Any potential GPO partner should have a plan to manage the impact of tariffs, cyber threats, climate disruptions, public health events and beyond.
How do they prepare to keep the supply chain running uninterrupted through disruptions? And what are their contingency plans when things don’t go according to plan?
6. What Technology and Data Analytics Capabilities Do You Offer — And Are They Actionable?
Insights are only valuable if they help you make informed decisions that result in performance improvement. Data for the sake of data is a waste. Assess a GPO partner’s insight tools, support, and integrations with your system.
7. How Do You Communicate Contract Changes and Market Updates?
Make sure your GPO outlines a process for notifying members of contract modifications, shortages, new product launches, or regulatory changes. Ask how transparent they are regarding pricing and vendor performance.
8. What Is Your Approach to Supplier Diversity, Sourcing Innovation and Sustainability?
Align with partners who share your goals for ESG (environmental, social and governance) principles and beyond. Because sustainability is not just good for the environment, it’s good for your bottom line. And a diverse supplier base supports both local communities and supply chain resiliency.
9. How Do You Support Quality Assurance and Clinical Outcomes?
High-performing GPOs have mechanisms in place to ensure the quality of products and services. They should also improve clinical outcomes by addressing key threats, such as variability and disjointed workflows.
10. What Makes You Different From Other GPOs?
Why should you choose them? Ask potential GPO partners to articulate a compelling value proposition beyond pricing alone.
For example, at Advantus, we do things differently. We help health systems move beyond the traditional GPO model with:
- A secondary GPO that offers greater savings in strategic priority areas
- Competitive pricing, regardless of your size or spend
- A strategic supplier model that vets suppliers for value and clinical quality, holding suppliers mutually accountable
- Modular solutions and levels of support, from a GPO to consulting to operations support
Good Questions Deserve Great Answers
By asking these targeted questions during the RFP process, health systems can better evaluate potential GPO partners and select one that aligns with their strategic goals, operational needs, and commitment to quality patient care. Thoughtful due diligence ensures a partnership that delivers value beyond simple cost savings, supporting resilience and innovation in a rapidly evolving healthcare landscape.
What questions do you have for us? Let’s start a conversation.
