THE PROBLEM HOSPITALS FACE (UNCOMFORTABLE TRUTHS).

Why GPO-Only Purchasing Costs More Than You Think

Hospitals and healthcare systems across the United States face a growing paradox: the tools meant to save money often end up costing more. For decades, Group Purchasing Organizations (GPOs) have been positioned as cost-savings champions — but what happens when market realities collide with outdated contract pricing?

Most Hospital Buyers Assume:

“If it’s on contract, it must be the best price.”

But the truth is starkly different.

The Reality Behind GPO Pricing

• GPO pricing is negotiated months or years in advance – Medical supply costs shift weekly due to demand, material costs, and logistics — but contracts don’t.
• Market pricing fluctuates weekly – Contract pricing stays rigid, so your hospital may be paying yesterday’s prices for today’s products.
• GPOs prioritize rebates, not lowest net cost – Rebates may look good on paper but don’t always deliver the best actual cost for high-volume items.
• Alternative manufacturers are excluded regardless of quality – High-quality, cost-effective products are often ignored because they aren’t on GPO lists.

The Real Cost: Overpaying on Everyday Essentials

Hospitals often overspend on high-usage, high-impact consumables such as:

• Gloves
• Masks
• Gowns
• Phlebotomy supplies

Even small price differences add up quickly when these items are used thousands of times daily.

The Bottom Line

Relying only on GPO pricing can cost more than you think. Not because GPOs are “bad” — but because:

• Contract-only pricing doesn’t reflect real-time market conditions
• Rebate structures favor volume and margins over net savings
• Exclusion of alternative manufacturers limits competitive pricing

Enter: DNA Distributors

At DNA Distributors, we exist to correct this imbalance — with a transparent, compliant model that:

• Evaluates real-time competitive pricing
• Identifies genuine cost savings without sacrificing quality
• Introduces alternative vendors that deliver better total cost of ownership
• Integrates seamlessly with your procurement compliance needs

How We Help Hospitals Save More

We’re not here to replace your purchasing strategy — we’re here to enhance it by:

• Bringing real-world market pricing into your supply strategy
• Providing clear, side-by-side comparisons
• Negotiating with manufacturers who deliver quality and price
• Helping reduce total spend on high-usage consumables

What Buyers Are Saying

“We didn’t know how much we were leaving on the table — until DNA Distributors showed us the data.”
- Supply Chain Director, Midwest Hospital Network

“It’s not just about the purchase price; it’s about the total cost over time.”
- VP of Materials Management

Ready to Stop Overpaying?

Contact DNA Distributors today to bring transparency, competitive pricing, and smarter purchasing to your supply chain.

Visit Our Website Email Us

Call: 847-665-8300

Key Takeaways

• GPO contracts don’t always mean lowest cost
• Market pricing is dynamic — contracts often are not
• Alternative manufacturers can deliver real savings
• DNA Distributors brings transparency and compliance