Aug 18, 2014
00:30 Mike’s work at a GPO.
00:45 There are two sides to the GPO business: the member side (pharmacies, hospitals), and the trade relations side.
1:00 Mike’s team was focused on the business partner development side of his work at the GPO, including work with a growing group called Specialty Pharmacy Solutions.
1:40 What is a GPO, and what does it do? A Group Purchasing Organization is an entity created to leverage the purchasing power of a group of individuals or businesses to obtain discounts from business partners that are based on the collective buying power of the GPO members.
2:45 Who would want to be in a GPO together? This can be split into two sides: the Acute side, which includes hospitals or integrated delivery networks, and the Post-Acute side, or the “Alternate Side Space,” which includes long-term care centers, specialty pharmacy, home infusion, home equipment, etc.
4:15 Most of the attention has been on the Post-Acute side with Accountable Care Organizations because the delivery of care can be most effective in these spaces.
4:50 How does purchasing in a GPO work? For pharmacies, it can mean being a one-stop shopping place.
7:15 How the Business Partner side of a GPO works.
8:45 How GPOs can help manufacturers get their products to reach a wider customer base.
10:40 An example of this in the pharmaceutical industry.
11:30 As an example, a GPO could help a company build a better marketing message as part of their partnership.
13:30 Two more advantages to working with a GPO include pushing a product to a wide potential consumer base, and possible extra sales support.
14:30 Why the value proposition of GPOs is being questioned.
15:35 Examples of some of the innovations offered by GPOs include reimbursement networks.
16:20 A few GPOs have even begun creating ACO networks.
17:00 For years, ACOs have been offering cost-effective healthcare, but didn’t have a good understanding of what a long-term care pharmacy provider, or specialty pharmacy provider, or a home-infusion provider does.
17:40 Automated Ordering Tools and the efficiency of ordering.
18:20 The importance of data analysis and collection.
19:00 Data analysis is invaluable when looking at things like re-hospitalization and the linkage between post-acute and acute in coordination.
20:00 The seven things a GPO can help membership with include: messaging, new distribution channel, the listserv, brand exposure, automated ordering, clinical support, data collection management and analysis, and lobbying in Washington.
20:50 A GPO can really be a market facilitator.
21:20 GPOs, typically, don’t prefer products, don’t create formularies, don’t create preferred situations of one product over another.
22:30 Many manufacturers never take advantage of a full engagement of what a GPO has to offer.
26:00 “Data becomes information, and information can become very instructive to creating strategy and really identifying patient type.”
27:00 There is a lot of very interesting emerging technology that could impact patient outcomes.
28:30 There is a strong movement for long-term care at home.
29:20 In the post-acute world, ACO networks are forming to be a voice for all post-acute providers, and making sure that that voice is heard.
30:30 How a hospital can prevent high percentages of patient readmission when they are fully coordinated in all aspects of data collection after patient discharge.
33:00 GPOs, through some avenues, can really be the voice of the post-acute world.
35:50 Potential gaps in GPOs that could benefit forward-thinking entrepreneurs: faster innovation may be one area.
38:35 How an organization can become a business partner in a GPO.
40:30 What Mike is up to now.
You can find Michael LinkedIn here