Combined GPOs expand purchasing power to support sustained cost reductions
Cincinnati, Ohio and Louisville, KY (Feb. 6, 2024) — Advantus Health Partners, an end-to-end health care supply chain solutions company and Alliant Purchasing LLC have formed a strategic partnership that will expand the purchasing power for members.
“Our vendor partnerships with global medical device companies exceed what hospitals and health systems can find in other national GPOs,” said Dan Hurry, president of Advantus Health Partners. “With Alliant as a strategic partner, we are now offering a solution that has not previously been seen in the market.”
Advantus takes a strategic approach to supply chain, by selectively contracting with vendor partners that offer sustained value in the surgical implant product portfolio while also delivering cost reductions and supply chain reliability.
“Similar to what you see in the retail industry, for example the Costco model, our focus in on a limited selection of solid brands that stand behind the quality of their products. This vigilance in choosing vendors drives standardization and improves clinical care and outcomes, while significantly reducing supply chain expenses,” said Hurry.
The strategic partnership with Alliant highlights key contracts in the surgical implant portfolio that represent valuable differentiators to both GPO members and the vendor community. Advantus also offers purchased service agreements for activation, bringing additional comprehensive programmatic value and benefits to member hospitals, health systems and committed vendor partners.
“Alliant’s partnership with Advantus has created something truly unique in the market. We now deliver significant expense reduction in very high cost and complex spend categories without dictating provider practice.” said Mark Slone, President and CEO, Alliant Purchasing. “The key to our success is the simplicity of the program and portfolio. Alliant and Advantus offer hospitals and ASCs top suppliers and market leading pricing without forcing members to jump through hoops or challenge their physicians and clinicians. For our long term members and the twelve new health systems that joined Alliant this year because of the Advantus program, it’s been a huge win to celebrate.”
Since the beginning of this partnership, savings for member hospitals and health systems range from seven to 21%. This is significant savings when considering the continued financial pressures in the health care industry, combined with the fact that supply chain oversees up to 40% of a hospitals total operating costs, according to a recent report by McKinsey and Company.