What is "group purchasing"?

Group purchasing refers to a collaborative approach used predominantly in the healthcare sector, where multiple healthcare providers, such as hospitals, clinics, or long-term care facilities, unite to leverage their collective buying power. By combining their purchasing needs, these providers can negotiate better pricing and contracts with suppliers than they could individually. This strategy not only reduces costs but also enhances access to a wider range of products and services.

The essence of group purchasing lies in building partnerships and fostering economies of scale; as more providers join together, the negotiating power increases, often leading to significant savings on medical supplies, equipment, and pharmaceuticals. This method benefits all participating members, as it helps them manage expenses while still maintaining high standards of care.