Group purchasing organizations (GPOs) are well-known for the benefits they’ve provided to healthcare providers, and for a long time, suppliers found they were a decent way to drum up consistent business for product sales. However, there are some aspects of legacy GPOs that make using them inconvenient or even costly for members. Some require that members hit specific spend thresholds, which can deter organizations from joining. Additionally, traditional GPOs focused solely on products, with little consideration of purchased services at the national level, which is shocking given that purchased services make up an estimated 20% of a hospital’s total operating costs. Purchased services simply cannot be overlooked any longer.
Conductiv, with nearly two decades of experience in helping organizations optimize third party services strategies, is shifting the GPO narrative. With its industry-trusted database and state-of-the-art AI algorithms, the company is driving tech enablement for third-party cost management and supply chains. Conductiv Contracts, a GPO specifically focused on purchased services, adds another avenue for suppliers and organizations to connect with carefully vetted partners that are ready to work together. As your organization considers whether a GPO is the right choice, here are some things to consider:
Supplier-Organization Relations are Partner Driven
With a rich history helping healthcare organizations source third-party services well below budgets (and $800 million saved to date), Conductiv’s cost management platform and complete suite of optimization services encourage and enable customers to connect with suppliers before contracts are up for renewal. By revealing contract timelines, KPIs, ROI and consolidation opportunities in one place, customers become more aware of overspend and areas for improvement, while suppliers can proactively showcase their latest offerings and prices, which can fluctuate during the year.
Conductiv Contracts has a sophisticated portfolio of suppliers, making it easy for organizations to find competitive contracts and the ideal supplier partner. The structure of Conductiv’s offerings attracts organizations and vendors looking beyond contracts, to pursue more partner-driven relationships. By emphasizing the relationship aspect, more lucrative and long-term partnerships are developed.
Suppliers Access Increased Visibility Regionally and Nationally
Regional regulations can vary, complicating sourcing procurement for larger networks with multiple locations. Conductiv Contracts takes the guess work and research out of the equation for those reviewing contract opportunities. By revealing local and regional contracts, Conductiv provides increased visibility for suppliers. When organizations can break down contract opportunity searches at a more granular level, suppliers have the potential to connect with more business opportunities to win more market share.
Conductiv Contracts connects regional and local suppliers to customers through its Automatic Opportunity Discovery, which analyzes GPO Members spend data to provide recommendations on the most appropriate contracted suppliers for their needs.
All Benefit from Centralized Negotiations
Beyond automated recommendations that have the potential to expand savings opportunities for purchased services, Conductiv Contracts acts as a hub for every step of the vetting-to-negotiating-and-signing process. Having the procurement process centralized means negotiations are expedited. Turnaround times to create new group purchasing contracts can be as quick as 30 days.
The GPO reveals greater transparency into member relationships and sourcing decisions so that there are no surprises for any party involved. For instance, RFP outcomes and KPIs are specifically outlined for consideration in the negotiation process and for accountability once contracts are signed.
Suppliers also have access to maturely structured commercial opportunity documents, like RFPs, thus making the quoting process more efficient.
Conductiv understands retention rates and long-term successes are what build strong relationships. Conductiv Contracts was designed with this in mind and truly empowers all partners. Organizations are empowered with increased purchasing power, while suppliers level up their practice by showcasing services to a broader audience and increasing the ways in which they engage with their markets.
Contact Conductiv today to learn more about how we partner with suppliers to help grow their businesses.