What is referred to by the acronym GPO?

The acronym GPO stands for Group Purchasing Organization. A Group Purchasing Organization primarily serves to leverage the collective purchasing power of its members to negotiate discounts and other favorable purchasing terms from suppliers. This is especially beneficial in the healthcare sector, where organizations like hospitals and clinics join GPOs to reduce costs on medical supplies, equipment, pharmaceuticals, and other goods and services.

By consolidating purchases, GPOs can achieve better pricing than individual members could negotiate alone. This not only helps reduce expenses but can also improve access to necessary products for healthcare providers, ultimately benefitting patient care. Understanding the role of GPOs is critical for those involved in the $340B program operations, as they can play a crucial part in the procurement strategies of covered entities, helping them maximize their benefits under this program.