Mounting economic pressures among providers have been steadily building recently. In some cases this has strained long-standing supplier and GPO relationships. If your partner is no longer delivering the desired economic value, it may be time to challenge the status quo.

You’re probably already aggregating spend for both clinical and non-clinical purchases in search of additional savings opportunities. But how substantial are the markdowns—and how much are you paying for them in the way of membership fees and additional investments? Regional purchasing coalitions (RPCs) are making a noble attempt to fill the value gap with committed spending across a narrow band of categories; however, they cannot drive the economics of scale through a 10- or 20-hospital alliance that a national GPO can obtain through a 1,400-hospital network. It’s a matter of simple mathematics: The more spend you aggregate, the lower the price points for everyone.

For top categories of indirect spend such as computers, office supplies, small parcel and rental cars, the quickest and easiest way you can put value to the test is through CoreTrust. We provide an aligned aggregated model to ensure best value without requiring a full GPO commitment or an investment in an RPC.

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Author Information

Scott Young

Scott Young

Scott Young is national vice president of sales for HealthTrust, a group purchasing and total cost management solutions provider, supporting nearly 1,400 acute care facilities and 10,600 ambulatory surgery centers, physician practices and alternate care sites. Prior to joining HealthTrust, Scott held operational as well as leadership roles within HCA supply chain at both the regional and corporate level. More Articles by This Author »