GPO Industry Continues Consolidation with HealthTrust’s Takeover of ROi

HealthTrust recently announced the signing of a definitive agreement with Resource Optimization & Innovation (ROi) to assume ownership and operations of the company.

ROi has been a provider-operated group purchasing organization (GPO) and accountable for the supply chain organization of Mercy, one of the nation’s largest Catholic health systems.

ROi delivers a range of cost management and supply chain services, focusing on all aspects of supply chain from planning through fulfillment and consumption to ensure the highest quality of care is delivered in the most cost-effective manner.

ROi has more than 100 GPO members, as well as more than 250 hospitals and 2,800 non-acute facilities across the U.S. ROi’s group purchasing volume is $4.4 billion annually. ROi has been working for a number of years to generate supply chain revenue and has successfully launched its Medical Device Implant Services line.

Following the closing of acquisition, HealthTrust will become the exclusive national group purchasing organization (GPO) for Mercy and other ROi partner members Orlando Health, Inc. and Franciscan Missionaries of Our Lady Health System. In addition, ROi’s co-workers will transition to HealthTrust and continue to support supply chain operations at Mercy facilities.

ROi acquired Orlando-based Healthcare Purchasing Alliance, LLC (HPA), a member-driven organization dedicated to providing clinical quality and cost savings through health care GPO services. HPA, previously owned by Orlando Health and South Lake Hospital, became a wholly owned subsidiary of ROi, operating as a separate entity to manage HPA’s legacy contract portfolio and provide custom contracting solutions throughout the continuum of care for ROi. Through the HPA acquisition, Orlando Health and South Lake Hospital agreed to a 7-year GPO membership term with ROi, while also maintaining membership with HPA.  

ROi’s Custom Pack Solutions division, offering customized surgical packs tailored for clinical end-users, will be established as an independent company owned by HealthTrust, with Mercy and other ROi owners maintaining a minority ownership.

HealthTrust is committed to strengthening provider performance and clinical excellence through an aligned membership model and the delivery of total spend management advisory solutions that leverage its operator experience, scale and innovation.

HealthTrust serves over 1,500 hospitals and health systems, and more than 35,000 other member locations including ambulatory surgery centers, physician practices, long-term care and alternate care sites. HealthTrust’s annual purchasing volume is $39 billion.

HealthTrust’s general partner company is owned by HCA Healthcare, Inc. HCA Healthcare has several indirect, wholly-owned entities that operate business lines providing services available under HealthTrust GPO vendor contracts.