GAO Report Finds No Convincing Evidence that GPOs Reduce Costs

On January 29, 2010, the Government Accountability Office (GAO) addressed a letter to Senator Chuck Grassley (R-IA) on the subject of Group Purchasing Organizations (GPO), organizations which negotiate with supply manufactures on behalf of hospitals and then sell the supplies to the hospitals at the negotiated rate.  Grassley had asked the GAO to examine the cost saving effect of GPOs.  The GAO was unable to find any unequivocal support in the existing literature for the notion that GPOs achieved any significant cost savings on behalf of hospitals. 

 

To view the GAO report click here