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Copyright © 2010

People, Places, Processes & Products that Influence the Supply Chain

GPO FACTS & FIGURES  

Largest Group Purchasing Organizations

GPO Headliners 2009

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 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 defines the "Front Line Nine" as GPOs with a minimum annual purchasing volume of $500 million and are not shareholders or members in other GPOs.

GPO Name

Location

Web address

2009 APV

1. Premier Inc.

Charlotte, NC

www.premierinc.com

$36.0B

2. Novation LLC*

Irving, TX

www.novationco.com

$35.9B

3. MedAssets Supply Chain Systems*

Atlanta

www.medassets.com

$19.0B

4. HealthTrust Purchasing Group

Nashville

www.healthtrustpg.com

$17.0B

5. Broadlane Inc.*

Dallas

www.broadlane.com

N/A

6. Amerinet Inc.

St. Louis

www.amerinet-gpo.com

$7.2B

7. U.S. Department of Defense

Washington

www.dscp.dla.mil/

$4.3B

8. U.S. Department of Veterans Affairs

Washington

www1.va.gov/oamm/index.cfm

$2.9B

9. MAGNET Inc.*

Mechanicsburg, PA

www.magnetgroup.com

N/A

2. Novation is owned by VHA Inc. and University HealthSystem Consortium. Its total includes contracted purchasing volume for supplies and services for VHA, UHC and Provista LLC.

3. MedAssets’ annual purchasing volume was derived from the organization's initial public offering filed with the Securities and Exchange Commission and reflects 2008 data because 2009 data were unavailable for release at press time.

5. Broadlane declined to participate this year until a standard definition for "annual purchasing volume" shared by all GPOs is proposed, accepted and adopted. HPN ranked Broadlane, based on a "guestimation" of past performance coupled with a growth multiple. HPN estimates Broadlane oversees $15 billion to $20 billion in unconfirmed annual purchasing volume, which would place it in the third, fourth or fifth ranking but we listed them fifth based on the fact that the third- and fourth-ranked organizations provided their results.

7/8. The U.S. Departments of Defense and Veterans Affairs typically purchase products via the same programs and suppliers so they are ranked together but their annual purchasing volumes are listed separately. The VA’s volume was derived from a report by the VA’s Office of Inspector General.

9. MAGNET declined to disclose its annual purchasing volume, due to its proprietary nature, but assisted HPN in ranking itself based on the purchasing volume of the nearest competitors. MAGNET offers the nation’s largest capital equipment portfolio among the top GPOs. Capital equipment represents 60 percent of its contract portfolio.

Source: Healthcare Purchasing News research, October 2009

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