Collectively Cutting Costs For Underserved Patients
CCHN Group Purchasing Agreements
On behalf of members, CCHN serves as the Group Purchasing Organization (GPO), maintaining group purchasing agreements, which use the collective purchasing power of our members to negotiate deeply discounted rates for certain goods and services. The savings achieved by these group purchasing arrangements help members lower the cost of caring for the underserved.
CCHN currently maintains GPO agreements with six vendors. As the GPO, CCHN receives a marketing fee from currently contracted vendors based on a percentage of all member purchases. Some of these fees serve to cover the costs of administrative management of the GPO, including legal fees and CCHN staff time. The remainder of the funds received as part of the GPO agreements is used to further the mission of CCHN to increase access to high quality health care for people in need in Colorado, and to support its member services.
CCHN holds three GPO agreements through the National Association of Community Health Centers (NACHC) Community Health Ventures (CHV) Value in Purchasing (ViP) Program. CHV is a business unit of NACHC that creates and manages GPOs for health centers throughout the United States. To learn more about CHV-ViP, please visit their website or contact CHV at email@example.com.
Below are highlights from CCHN’s GPOs, including discount features, participation, and the savings achieved by members.
Community Health Centers, CCHN, and the Laboratory Corporation of America (LabCorp) have a GPO agreement whereby members purchase reference laboratory services discounted at an average of 65 percent off of LabCorp’s published fee schedule, including price discounts for the top 2,000 lab tests. Seventeen Colorado CHCs participate in the lab GPO, as well as three CHCs from Wyoming and Montana, one from South Dakota, and 19 non-CHCs from Colorado. In 2015 members collectively saved more than $3 million in laboratory service costs.
Community Health Centers, CCHN, and Henry Schein Dental have a GPO agreement whereby members purchase dental merchandise and equipment discounted up to 21 percent off the customary price. Twelve CHCs and four Colorado non-profit dental organizations currently participate in the dental GPO. In 2015 members collectively saved more than $800,000.
Community Health Centers, CCHN and Texas Association of Community Health Centers (TACHC) have a GPO agreement whereby members are able to purchase pharmaceuticals through TACHC’s 340Better program. Three CHCs participate in the pharmaceutical GPO.
Community Health Centers, CCHN, and Henry Schein have a GPO agreement through CHV-ViP whereby members purchase medical supplies at a discount from a product portfolio that encompasses high-quality, high-value products ideally suited for the needs of CHCs. Two CHCs participate in the Henry Schein GPO.
Community Health Centers, CCHN, and McKesson Medical-Surgical (formerly McKesson and Physician Sales & Service (PSS)) have a GPO agreement through CHV-ViP whereby members purchase medical supplies at a discount from a product portfolio that encompasses high-quality, high-value products ideally suited for the needs of CHCs. Six CHCs participate in the McKesson Medical-Surgical GPO and one Colorado non-profit clinic.
CCHN surveys members regularly to collect feedback on their satisfaction with each GPO agreement, as well as identify additional services or products that may be missing from our current agreements.
For more information on how your community health center or affiliate can participate in a CCHN GPO, please contact Sarah Macrander.