HealthTrust and Tenet Healthcare Renew GPO Agreement

HealthTrust, a leading national group purchasing organization (GPO), and Tenet Healthcare, a diversified integrated delivery network consisting of more than 600 care settings across the U.S., recently renewed the companies’ agreement to elevate supply chain performance and support clinical operations.

In renewing the GPO agreement, HealthTrust and Tenet will expand clinical integration capabilities to optimize the contract portfolio. In addition, HealthTrust will support Tenet’s expansion of service-line operations, notably its USPI ambulatory platform of surgery centers and surgical hospitals. Tenet will also participate in HealthTrust’s co-managed joint venture to produce personal protective equipment (PPE) in the U.S.

HealthTrust initially signed a five-year relationship with Tenet Healthcare that started on Feb. 1, 2016. Under the terms of the initial agreement, HealthTrust partnered with Tenet Healthcare to drive best operating and clinical practices, and accelerate cost savings across 81 acute care hospitals and 19 surgical hospitals.

HealthTrust serves over 1,600 hospitals and health systems, and more than 55,000 other locations including ambulatory surgery centers, physician practices, long-term care and alternate care sites.

Through an expansive care network that includes United Surgical Partners International, Tenet operates 65 hospitals and approximately 550 other healthcare facilities, including surgical hospitals, ambulatory surgery centers, urgent care and imaging centers and other care sites and clinics.

HealthTrust, as a subsidiary of HCA Healthcare, leveraged its expertise in revenue cycle management, healthcare group purchasing, supply chain management, and staffing functions led it to invest in Parallon, a subsidiary, that partners with healthcare providers to more efficiently manage their operations.

HCA Healthcare owns, manages or operates hospitals, freestanding surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, radiation and oncology therapy centers, comprehensive rehabilitation and physical therapy centers, physician practices and various other facilities.

Takeaway: HealthTrust leverages its membership size and national purchasing power that provides price advantage on supplies