As U.S. healthcare costs continue to rise, providers will pressure them to provide high quality care while managing costs. A groundbreaking study by researchers at the University of Nebraska Lincoln University explores ways that group purchasing organizations can increase supply chain efficiency and reduce patient care costs.
“The hospital uses important supplies such as syringes, radiation equipment, heart valves and coagulation agents for daily work,” says the chairman of business Alock Kumar, Steve and Jennifer David, and marketing professor. It states. “Managing the cost of supply is important to provide cost-effective care as there are very few other ways to reduce costs. For example, a competitive salary for a doctor You have to pay for it.”
He said that while most hospitals excel at providing healthcare on “deep benches of healthcare talent,” it often lies beyond their primary expertise to manage supply chain costs. GPOs help healthcare providers save money by consolidating purchases and negotiating discounts between manufacturers and distributors.
“We have looked at ways hospitals can leverage the interaction between GPOs and their suppliers to improve hospital supply chain performance, which should lead to more effective and efficient patient care.”
the study, “The impact of purchasing groups on buyer-supplier relationships: group dyad interactions in the inter-business market;“It was published in the Journal of Marketing Research and was partially published from the Nebraska paper work by Jennifer Skiba, a 2016 graduate currently working at Missouri State University. Her dissertation chair is currently; I’m in Texas A&M.
The team found that GPOs benefit healthcare providers, but their effectiveness differs.
“GPOs can support hospital supply chain outcomes by helping benchmark supplier performance against competition and promoting supplier participation in a wider GPO community consisting of hospitals and suppliers,” he said. Saini said. “But these benefits depend on how well a hospital relies on the supplier in question, and how much the hospital can tailor the supplier’s deliverables themselves.”
Impact on a wide range of industries and policies
The findings include significant impacts on industries such as manufacturing, retail and food production, which rely on group purchase groups, as well as healthcare.
“Within the healthcare sector, 97% of all hospitals use GPOs to raise. Total savings of over $30 billion a year.”
The study highlights the possibility that policymakers such as the Centers for Medicare and Medicaid Services and the Government’s Office of Accountability may use these insights to inform strategies to reduce healthcare costs.
“The cost of healthcare has been a long-standing problem in the US,” Kumar said. “In fact, recent news reports show how this cost can lead to patient anxiety, distrust, and even violence against healthcare providers and institutions. Against this background, our work is to say that hospitals are able to provide patients with a patient. It contributes to the discussion of ways to reduce and reduce costs of care.”
The pioneer of the future
This study also represents a major academic milestone.
“This is the first paper within marketing to comprehensively analyze the role of organizational collectivity governance, such as GPOs, using empirical data, and is likely to be across discipline. ” Saini said. “The organisational population is rampant, but most literature simply ignores them and sees them as entities that are too complicated to be cumbersome and complicated to analyze.”
Looking ahead, researchers propose expanding their framework to study other multiparty alliances, such as those emerging in home care services.
“As hospitals are increasingly working with pharmacies, community health agencies and technology companies, understanding how to coordinate these complex interactions is important for the future of patient care,” Saini said. Masu.
