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What is Group Purchasing

What is Group Purchasing?

A group purchasing organization (GPO) is an entity that is created to aggregate the purchasing volume of a group of businesses to obtain discounts from vendors based on the collective buying volume of the GPO members. Managing purchasing effectively is critical to achieving overall operational success and providing optimal patient/customer service, and can present a substantial financial advantage.

gpo chart

Are there membership fees to join a GPO?

GPOs, like Essensa, receive administrative fees that are paid by the suppliers based on purchasing volume. The amount of administrative fees received from each supplier with respect to purchases made by or on behalf of each member is disclosed annually to each member. Under this methodology, our members do not pay a membership fee to belong.

Contract Categories & Essensa Purchasing Programs

As a GPO, we know that we're only as good as our contract portfolio. And our portfolio, combined with the Premier portfolio is the most comprehensive and advantageous purchasing program serving the industry today. Below is just a sampling of the contract categories and purchasing programs available to members:

  • Capital Equipment
  • Computer Hardware/Software
  • Employee Screening Services
  • Facility Maintenance & Construction
  • Food & Food Services
  • Home Medical Equipment/Durable Medical Equipment (HME/DME)
  • Housekeeping Products
  • Imaging
  • Laboratory Supplies
  • Medical/Surgical Supplies
  • Office Supplies
  • Pharmaceutical Supplies
  • Shipping
  • Telecommunications/Wireless Services
  • And more

About Essensa
What is Group Purchasing?
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