GPOs: Differentiated or Commoditized?

Allison D. Briggs () and Lawton R. Burns
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Allison D. Briggs: The Wharton School, University of Pennsylvania
Lawton R. Burns: The Wharton School, University of Pennsylvania

Chapter Chapter 8 in The Healthcare Value Chain, 2022, pp 339-362 from Springer

Abstract: Abstract The preceding chapter makes the case for the pro-competitivePro-competitive and welfare-generating impacts of GPOs. As stated earlier, “GPOs are certainly not be as bad as their critics say they are.” This chapter makes a different point. GPOs are intermediariesIntermediaries in the healthcare value chain performing contracting and supply chainSupply chain functions. Such functions are largely “back office” and opaque. Like other intermediariesIntermediaries—such as insurersInsurer and product distributors—it is hard to get excited about the GPOs. Moreover, given their back-office role, it is hard to distinguish one from another and talk about excellence. The point here is that “GPOs may not be as good as they think they are.” Perhaps Larry David had it right: curb your enthusiasm.

Date: 2022
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DOI: 10.1007/978-3-031-10739-9_8

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