Bon Secours Mercy Health Launches Internal Group Purchasing Organization

As hospital supply chain expenses continue to increase, industry stakeholders are developing strategies to decrease costs.

Health systems are establishing internal group purchasing organizations (GPOs) to identify cost-savings efficiencies through purchasing. Numerous health systems have established internal GPOs, including: Ascension Health, Highmark, Intermountain Healthcare, and Johns Hopkins Health System, among others.

The most recent health system to join this list is Bon Secours Mercy Health (Bon Secours), the fifth-largest Catholic health system in the country. Bon Secours recently announced the launch of Advantus Health Partners. Advantus is a group purchasing organization (GPO) that will identify cost-savings efficiencies through purchasing.

Advantus also offers expertise in distribution and logistics, inventory management, clinical integration and many other integrated supply chain solutions. The GPO will use advanced data and analytic systems to help partners modernize, track and inform sourcing and logistic decisions to create more efficient operations.

Advantus will partner with a range of health facilities, including community hospitals, academic medical centers, critical access hospitals and ambulatory surgery centers, and will use advanced data and analytic systems to help its partners inform sourcing and logistic decisions. 

Takeaway: Growing trends in group purchasing/procurement include hospitals and health systems creating new supply chain management organizations