Unlocking Cost Savings and Efficiency: How GPOs Benefit Senior Care

April 17, 2024

In today's constantly evolving healthcare industry, supplies and equipment are expensive, and the procurement process can be quite complicated. Optimizing costs without sacrificing the quality of service remains crucial for healthcare providers. To that end, utilizing a Group Purchasing Organization (GPO) could be a strategic move for your senior care facility. A GPO helps providers save on their purchases, increase operational efficiency, and streamline procurement processes.

In this article, we'll explore how GPOs can benefit your senior care facility and look at five reasons why you should consider working with one.

1. Cost Savings

One of the main reasons why GPOs are essential for senior care facilities is the cost savings they offer. By pooling the purchasing power of multiple providers, GPOs can negotiate discounts and special pricing on medical supplies and equipment. This translates to significant savings - up to 20% of total expenses on medical supplies in some cases. These savings can be used to improve the quality of services offered to patients, invest in capital projects, hire more staff, and expand the business.

2. Streamlined Procurement

GPOs also offer streamlined procurement processes that simplify purchasing for your senior care facility. They allow healthcare providers to access a broad portfolio of suppliers, negotiate more favorable terms, and even recommend particular suppliers that meet a given facility's specific needs. GPOs also manage and standardize paperwork and inventory, which can improve invoice accuracy and reduce processing time.

3. Access to Industry-Leading Brands

GPOs partner with industry-leading brands to offer their members access to the latest high-quality products and services. These partnerships ensure senior care facilities can experience the benefits of innovative solutions, increased efficiency, and other value beyond just cost savings.

4. Compliance with Regulatory Requirements

GPOs also help senior care facilities comply with regulatory requirements by ensuring that the products and services purchased through the partnership meet the necessary regulatory standards and guidelines, thus reducing the risk of penalties and other disciplinary actions. This helps providers put more of their focus on patient care, as they can be assured that their purchases comply with regulatory expectations.

5. Dedicated Support

Finally, working with a GPO means having access to a wide range of support services, including data analytics, formulary management, quoting for large capital items, training for new staff, benchmarking, guidance, and more.


In conclusion, utilizing a GPO furnishes healthcare providers with significant benefits. Cost savings are a priority, as well as streamlined procurement processes, access to industry-leading brands, regulatory compliance, and dedicated support, but these are only some of the advantages that GPOs offer. Senior care facilities would do well to explore how these benefits can help them to better meet the specific needs of their patients and optimize their operations.

MedTrust Health Alliance specializes in meeting the needs of long-term care providers. We offer transparent programs and partner with industry-leading brands to deliver considerable value to our customers. Contact MedTrust today to start saving on your purchases and improve your procurement processes!