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INDUSTRY INFORMATION Educational Supply Chain Programs, continued...


Stonehill College, Easton, MA, http://www.stonehill.edu/academics/areas-of-study/healthcare-administration/healthcare-supply-chain-manage/ Syracuse University, Syracuse, NY, https://www.syracuse.edu/academics/undergraduate-majors-minors/supply-chain-management/ Texas A&M University, College Station, TX, https://mays.tamu.edu/bba-supply-chain-management/ Texas Christian University, Fort Worth, TX, http://www.neeley.tcu.edu/Academic_Departments/Info_Sys_Supply_Chain_Mgt/Supply_Chain_Mgt.aspx University of Arkansas, Fayetteville, AR, http://waltoncollege.uark.edu/lscm/ University of Cincinnati, https://www.uc.edu/ces/what-can-you/major_product_infor_supply_mgt.html University of Houston, https://www.bauer.uh.edu/undergraduate/supply-chain-management/ University of Minnesota, Minneapolis, https://carlsonschool.umn.edu/departments/supply-chain-operations-department University of North Texas, Dallas, https://www.unt.edu/pais/insert/ulogi.htm University of Oklahoma, Norman, http://www.ou.edu/price/marketing_supplychainmanagement University of Pennsylvania-The Wharton School, Philadelphia, http://hcmg.wharton.upenn.edu/ University of San Diego, https://www.sandiego.edu/business/graduate/ms-supply-chain-management/ University of South Carolina, https://www.sc.edu/study/colleges_schools/moore/academic_departments_and_research/academic_departments/depart- ment_of_management_science/index.php and https://www.sc.edu/study/colleges_schools/moore/business_solutions/research_and_partnership_centers/ operations_and_supply_chain_center/index.php


University of South Florida, Tampa, http://www.usf.edu/business/departments/marketing/supply-chain-management/graduate.aspx The Institute for Supply Management comprehensive state-by-state list: ism.ws/membership/content.cfm?ItemNumber=4742


GPO Headliners 2018


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 represent a small percentage of the total number of GPOs in operation today. Here’s a glimpse at the top 10 based on GPO-reported annual purchasing volume. HPN lists the top GPOs with a minimum annual purchasing volume of $500 million in a broad range of product and service categories and that are not shareholders or members in other GPOs. These numbers represent fiscal year 2017 unless otherwise noted.


GPO Name 1. Vizient


2. Premier Inc. 3. HealthTrust


4. U.S. Department of Veterans Affairs 5. PDM Healthcare


6. The Resource Group (Ascension) 7. Intalere


8. U.S. Department of Defense/Defense Logistics Agency 9. Resource Optimization & Innovation 10. MAGNET Group


Disclaimers/Full Disclosure


1. Vizient reported fiscal year 2017 results at press time. The figure reported represents actual purchases through its contracts, independent of any distribu- tor fees or any other additional inflationary measurers. Vizient said the “APV reflects true dollar purchases through our GPO contracts.”


2. Premier re-emphasized its conservativism in reporting its APV as it “uses members’ actual spend data related to Premier contracts and not their total non- labor expense spend, which would be a much larger number.” Premier reiterated that it does not “believe that historically all GPOs used a similar or similarly conservative methodology.” Consequently, Premier shared the most recent number Premier executives use in presentations to current and prospective members.


4. The VA’s figure represents “VHA contracts that include about $14 billion in VHA FSS and NCS sales and $1 billion in VHA non-FSS and non-NCS sales. The $15 billion is largely healthcare-related and includes whatever is necessary to run VHA hospitals and clinics.”


5. PDM Healthcare chose not share its annual purchasing volume, due to its proprietary nature, but assisted HPN in ranking itself based on an unaudited analysis of member facilities’ actual dollars in aggregate for budgeted-for goods and services through manufacturers.


7. Intalere declined to disclose its annual purchasing volume, due to its proprietary nature, but assisted HPN in ranking itself based on an estimated, unau- dited analysis of the aggregate member facilities budgeted-for goods and services.


8. This total represents FY2017 medical spending for the Defense Logistics Agency of the Department of Defense. The DLA is a subset of the DoD that handles medical logistics. DLA medical spending comprises pharmaceuticals -- including vaccines, medical/surgical items, high-dollar capital equipment, hospital equipment, medical assemblies/kits and medical supplies that span laboratory, dental, optical, sports medicine and surgical implants.


9. Resource Optimization & Innovation (ROi) reported a figure that includes contract purchases in seven major categories – pharmaceuticals, medical/surgi- cal supplies, capital equipment, laboratory supplies, dietary/food service/nutrition supplies, purchased services and physician preference items. The figure does not count distribution volume.


10. MAGNET Group did not respond to HPN requests for comment. In past years, the GPO declined to disclose its annual purchasing volume, due to its proprietary nature, but HPN was able to list the GPO based on its relative position to the purchasing volume of the nearest competitors.


Please note that HPN strives to be as accurate as possible with these numbers that the GPOs report. Further, HPN acknowledges that historically some GPOs have derived 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 by counting a hospital’s entire purchasing volume even though the hospital funnels only a percentage through that GPO, among other strategies and tactics. 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 through interviews and available online sources and educated estimates where data were not available, October 2018 hpnonline.com • HEALTHCARE PURCHASING NEWS • Industry Guide 2019 9


Location Irving, TX


Charlotte, NC Nashville


Washington Cleveland St. Louis St. Louis


Washington St. Louis


Web address www.vizientinc.com www.premierinc.com www.healthtrustpg.com www.va.gov/plo/


www.pdmhealthcare.com theresourcegroup.com/ www.intalere.com


www.dla.mil/TroopSupport www.roiscs.com


Mechanicsburg, PA www.magnetgroup.com APV


$99B* $60B . $39B. $15B* *


$7.7B. *


$6.9B. $2.8B* *


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