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Largest Group Purchasing Organizations

GPO Headliners 2012

Most of the nation’s hospitals and a growing number of non-acute care facilities use the services of group purchasing organizations to some degree. While literally hundreds of GPOs and integrated delivery networks (IDNs) conduct business for their various members — including owners, shareholders and affiliates, many of them actually belong to one of the larger "parent" organizations, which actually represent a small percentage of the total number of GPOs in operation today. Here’s a glimpse at the top 9 based on annual purchasing volume. HPN lists the top GPOs with a minimum annual purchasing volume of $500 million and are not shareholders or members in other GPOs.

GPO Name


Web address

2012 APV

1. MedAssets

Alpharetta, GA


2. Novation LLC*

Irving, TX


3. Premier Inc.

Charlotte, NC


4. HealthTrust Purchasing Group



5. Amerinet Inc.

St. Louis


6. PDM Healthcare



7. U.S. Department of Defense



8. U.S. Department of Veterans Affairs



9. Resource Optimization & Innovation

St. Louis


1. In its Annual 10-K filing for 2011, MedAssets reported that its Spend and Clinical Resource Management business segment "manages more than $48 billion of annual supply spend by healthcare providers, including over $27 billion of annual spend through our group purchasing organization on behalf of more than 2,600 hospital clients." MedAssets only collected administrative fees on the $27 billion in contract purchases and not on the other $21 billion in purchases for which it negotiated the contracts, according to the company. MedAssets will publish 2012 data when it releases its 4Q2012 financials in 1Q2013.

2. Novation is owned by VHA Inc. and University HealthSystem Consortium so its total includes contracted purchasing volume for supplies and services for VHA, UHC and Provista LLC. Novation reported $43 billion in annual purchasing volume by its members and that it manages more than $75 billion of annual "supply spend" by healthcare providers.

3. Premier declined to disclose its annual purchasing volume because it felt the numbers represented in this and any other published compilation "do not reflect reality in the marketplace." HPN used the most educated assumption based on available data from Premier’s Web site, which lists them as managing "up to $43.0 billion" in purchasing volume, and online news reports — to rank Premier. Please refer to the disclaimer below.

6. PDM Healthcare declined to disclose its annual purchasing volume, due to its proprietary nature, but assisted HPN in ranking itself based on an unaudited analysis of the aggregate member facilities budgeted-for goods and services. Since 1991, PDM Healthcare has provided services to all classes of trade in the healthcare industry, with a specialized focus on emerging markets.

7/8. The U.S. Departments of Defense and Veterans Affairs typically purchase products via the same programs and suppliers, but HPN listed their annual purchasing volumes independently and ranked them separately. Because the Department of Veterans Affairs did not respond by the deadline HPN used the most educated assumptions based on available data to rank the organization appropriately.

Please note that HPN strives to be as accurate as possible with these numbers that the GPOs report. Further, HPN acknowledges that some GPOs may derive their totals by such tactics as double-counting product purchases through manufacturers and distributors, as well as including purchasing volumes of facilities where they provide consulting services but do not provide direct contractual purchasing activity and counting a hospital’s entire purchasing volume even though the hospital funnels only a percentage through that GPO. HPN brings these caveats to readers’ attention to show that it strives to provide these numbers in good faith as a service and must trust the ethics of the responders in answering as truthfully as possible.

Source: Healthcare Purchasing News research via GPO self-reported data and educated estimates where data were not available, October 2012