Dobson|DaVanzo

Dobson | DaVanzo's Analysis Finds That GPOs Could Substantially Reduce Healthcare Spending Over the Next 10 Years

Published Wednesday, May 22, 2019

Dobson | DaVanzo analyzed the National Health Expenditure (NHE) data published by CMS along with data collected from a survey of healthcare providers that use group purchasing organization (GPO) services to show substantial savings for the entire healthcare industry. In particular, the analysis showed that GPOs are projected to reduce total health care spending for hospital and nursing homes by up to $456.6 billion over the next ten years (2017-2026). Medicare is estimated to account for over 25 percent (or $116.3 billion) and Medicaid for approximately 20 percent (or $90.2 billion) of these cost savings.

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