GPO Pricing vs Alternative Sourcing: When Hospitals Overpay for Medical Supplies
Hospitals often overpay when high-volume SKUs are not regularly benchmarked and GPO renewals roll forward with unnoticed price increases. Alternative sourcing can validate pricing, support supply continuity, and reduce budget volatility without disrupting existing contracts.
Group Purchasing Organizations (GPOs) play an important role in healthcare supply chain management—but GPO pricing isn’t always the lowest-cost option for every product, every time.
Many hospitals discover:
contract pricing drift over time
increases roll through unnoticed
competitive alternatives are excluded by default
high-volume SKUs aren’t regularly benchmarked
The good news: hospitals can validate pricing and explore alternatives without disrupting existing vendor relationships.
✅ Request a Cost Comparison
✅ Request Contract Pricing
Key Takeaways
GPO pricing is valuable, but not always lowest-cost for every SKU
High-volume consumables (gloves, masks, gowns) often have the biggest savings opportunity
Price increases can roll forward quietly during renewals
Alternative sourcing can be used for benchmarking, secondary supply, or gap coverage
Price Lock™ options may help reduce volatility on essential consumables
Why GPO Pricing Isn’t Always the Best Price
1) Price increases roll into renewals
Contracts renew, pricing changes, and it can be hard for facilities to validate every SKU—especially when teams are stretched.
2) High-volume SKUs aren’t benchmarked frequently enough
Even small unit-price differences create major annual impact at scale.
3) Substitutions reduce transparency
Facilities may remain “compliant” while losing visibility into whether pricing is still competitive.
4) Alternative suppliers aren’t compared by default
Most teams don’t have time to run routine comparisons.
When Alternative Sourcing Makes the Most Sense
Hospitals often see the greatest opportunity on:
exam gloves (high-volume consumable)
procedure masks and protective apparel
isolation gowns
infection prevention essentials
Alternative sourcing works best when you can:
maintain compliance and documentation
confirm availability
standardize SKUs and reduce variation
What a “Zero-Risk Cost Comparison” Looks Like
You share an invoice or list of high-volume SKUs
We benchmark pricing and identify alternatives
You review a side-by-side comparison
You decide whether to switch, supplement, or benchmark only
✅ Start here: Request a Cost Comparison
✅ Why DNA / Assurance Programs
How Price Lock™ Fits into Hospital Budget Cycles
Budget volatility is one of procurement’s biggest pain points. For essential consumables, Price Lock™ options (12–24 months) may help stabilize forecasting and reduce year-over-year surprises.
👉 Learn more: Why DNA / Assurance Programs
Frequently Asked Questions
Do we have to replace our primary supplier?
No. Many facilities use alternative sourcing to supplement, benchmark, or fill gaps.
Is a cost comparison disruptive?
No. Cost comparisons can be done without changing existing contracts.
Can we request pricing for only a few SKUs?
Yes. Many facilities start by validating pricing on a short list of high-volume items.
Validate High-Volume SKU Pricing Before Renewals Roll Forward
If you’re heading into renewal season, a comparison can reveal pricing gaps quickly.
