HealthCare Group Purchasing is a member-driven regional buying group serving 900 health care facilities located primarily in the U.S. east of the Mississippi.

HGP's Committed Volume Contracting Process

HGP is guided by the philosophy that committed volume contracting consistently produces the lowest prices of any form of group purchasing... an average of nearly 20% below previous prices. Committed volume contracting means that each facility commits itself, prior to a particular bid, to purchase from the group contract award winner, provided that:  

• The price is better than that currently being paid,
• The quality of products and services remains acceptable throughout the term of the contract, in the opinion of the member facility and,
•  The contract is awarded by a majority vote of the committed members at the award meeting.

These three important provisions enable members to commit up front to participation in competitive bids, without any downside risks.

Benefits of HGP Participation

• Member Savings:
• High Quality Products and Service: High quality products and superior service are assured through the HGP group process. Vendors and products must meet strict group terms and conditions, reducing the subjectivity and risk of individual member purchasing decisions.
• Member Protections: Greater protections afforded in HGP group contract terms and conditions are a direct result of the combined volume of the participating members. HGP standard terms and conditions always include provisions for market condition price reductions, "cover" at contract price for insufficient inventory, and hold harmless clauses for participants and the group. Vendor compliance to these terms is continuously monitored by HGP.
•  Continuing Education Opportunities: Educational programs, sponsored by HGP for its members, address topics of interest to health care managers of various disciplines. Conveniently located, and often at no cost to member facilities, HGP educational programs, when possible, are approved by appropriate professional associations to offer attendees CEU's in thier area of expertise

Member Driven Process

HGP Member nursing homes and hospitals direct the development of group purchasing contracts. HGP provides staff to facilitate the process and handle the paperwork.  Committees, composed of representatives from health care facilities, collaborate within their areas of expertise.

Members:

• Identify products and/or services suitable for group purchasing
• Pre-qualify acceptable vendors
• Approve bid specs and develop contract terms and conditions
• Perform product evaluations where appropriate
• Commit to participate on a risk free basis
• Open sealed bids
• Identify bid winners and award contracts
•  Enjoy the benefits and savings that result!