2. SIMPLIFIED VENDOR MANAGEMENT
GPOs simplify the procurement process by managing vendor relationships. Implementing supplier contracts that have already been reviewed and validated by a GPO saves valuable time, enabling facility operators to allocate resources toward enhancing resident experiences, rather than focusing on identifying the most optimal suppliers and negotiating contracts.
Working with a GPO not only speeds up the procurement cycle, but also reduces the risk of delays caused by complex supplier evaluations and lengthy negotiations. GPOs offer a streamlined approach to working with vendors, minimizing the administrative tasks typically associated with contracting, while ensuring that facilities buy products from trusted suppliers. Tapping into the expertise of GPOs also helps ensure supplier compliance with industry standards.
In addition, working with GPOs brings a new level of efficiency to procurement teams. They give staff at senior living communities a single point of contact for multiple suppliers, which means clients get quick answers to questions or concerns. This centralized communication brings a new level of efficiency to procurement teams.
3. IMPROVED COMPLIANCE, PROCUREMENT AND CONTRACT MANAGEMENT
Managing supplier contracts and ensuring correct pricing on products is time-consuming and can lead to complex processes to track down discrepancies. This is another area where a GPO can help. They assist with contract management and negotiations for clients while also helping to avoid pricing mistakes that could quickly become expensive, especially if they’re not noticed for weeks or months.
In addition, GPOs can manage the reconciliation process between manufacturers, suppliers and healthcare providers. With modern procurement tools and the expertise to identify discrepancies, submit claims and recover lost funds efficiently, GPOs provide value across the end-to-end procurement process. For example, Provista offers a complete procure-to-pay software platform called Envi® to simplify and automate purchasing.
Senior living communities must meet compliance or regulatory requirements for various products. These can include sourcing food products covered by reliable recall processes, non-slip flooring to meet the Americans with Disabilities Act (ADA), security monitoring systems that align with privacy laws and wound care supplies that meet health department regulations. GPOs understand these regulations to help clients buy the right products to meet their needs and maintain compliance.
4. COST PREDICTABILITY FOR BETTER BUDGETING
GPOs bring transparency and budget stability to senior living communities by offering locked-in pricing and long-term, competitively priced contracts. Predictable costs allow facility operators to plan financial forecasts more effectively, allocate resources properly and avoid unwelcome budget surprises that could have a negative impact on the bottom line.
Cost consistency also protects facilities from unpredictable market fluctuations, such as sudden increases in certain foods, that strain budgets. Plus, by stabilizing prices, GPOs enable senior living communities to deliver the quality care and services residents expect without being limited by financial restraints.
Another benefit GPOs bring to the table is personalized cost projections. By analyzing an organization’s spending data, GPOs can provide insights into spending trends, therefore helping facilities identify cost-saving opportunities and maximize their purchasing strategies for long-term sustainability.
5. VALUE-ADDED SERVICES FOR FACILITY OPTIMIZATION
GPOs offer services such as data management and industry expertise to inform buying strategies and deliver insights into money-saving opportunities. These GPO services support strong financial performance, which can ultimately contribute to a higher quality of resident services by directing money to resident priorities.
GPOs also have access to comprehensive data and analytics. These enable senior living communities to better understand their buying behaviors to inform future procurement decisions, leading to better financial and care outcomes.
These value-added data services enable senior living operators to fully optimize procurement strategies and improve overall financial performance. With access to trusted data and comparative insights, facilities can align operations with industry best practices, ensuring they remain competitive while making the most informed procurement decisions possible.
HELPING SENIOR LIVING COMMUNITIES THRIVE
Senior living communities face the dual challenge of providing exceptional experiences to residents while managing tight budgets. GPOs provide a critical lifeline, enabling facilities to optimize procurement processes, manage compliance and find cost-saving opportunities. By using bulk purchasing power, simplifying vendor management and offering tools for predictive budgeting, GPOs help senior living operators successfully relieve financial pressures.
Ultimately, working with a GPO like Provista helps reduce operational and procurement pain points, while also freeing up valuable resources, including staff time. With the right GPO partnership, senior living communities can achieve greater efficiency and financial sustainability while enhancing resident experiences.
