MRO

MRO Categories In CBRE

Suppliers / Pricing

Waste Services & Circular Economy

Other Costs To Consider

Suppliers / Pricing

Waste Services & Circular Economy

How To Price Waste & Circular Services

Suppliers / Pricing

Waste Services & Circular Economy

How To Price Waste & Circular Services

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MRO-017 Ver 1.1 (April 23)

Confidential & Proprietary | 2023 CBRE Inc.

Healthcare group purchasing organizations (GPOs) are the sourcing and purchasing partners to virtually all of America’s 7,000+ hospitals — 98% of all U.S. Hospitals utilize a GPO.   GPOs boast the delivery of $34.1 billion annually in costs savings to healthcare systems and forecasts an increase to $456 billion over the next ten years. 

Benefits Of  Healthcare GPOs

Lower costs - Healthcare GPOs can negotiate lower prices for medical supplies and equipment than individual providers can, by pooling their purchasing power and leveraging economies of scale.  Healthcare GPOs can also help lower the administrative fees paid by healthcare facilities, by reducing the transaction costs associated with negotiation.

Improved efficiency - Healthcare GPOs can help streamline the sourcing process and reduce errors, by providing digital solutions such as e-procurement, e-catalogs, e-invoicing and e-auctions.  Healthcare GPOs can also help improve inventory management and reduce waste, by implementing vendor managed inventory (VMI) programmes and standardizing products.

Enhanced quality - Healthcare GPOs can help improve the quality of care and patient outcomes, by sourcing high-quality products and services that meet the clinical needs and preferences of providers.  Healthcare GPOs can also help monitor and improve supplier performance, by identifying and tracking key performance indicators (KPIs) and providing feedback mechanisms.

Increased innovation - Healthcare GPOs can help foster innovation and competition in the healthcare market, by introducing new products and services that address unmet needs or offer better value.  Healthcare GPOs can also help support research and development, by providing data analysis and market intelligence to suppliers

How Does A GPO Work?

MRO

MRO Categories In CBRE

Suppliers / Pricing

Waste Services & Circular Economy

Other Costs To Consider

Suppliers / Pricing

Waste Services & Circular Economy

How To Price Waste & Circular Services

Suppliers / Pricing

Waste Services & Circular Economy

How To Price Waste & Circular Services

Suppliers / Pricing

Page 2 of 4

MRO-017 Ver 1.1 (April 23)

Confidential & Proprietary | 2023 CBRE Inc.

Healthcare GPOs and facilities management company partnerships are arrangements where healthcare providers and facilities management companies join forces to leverage their collective purchasing power and achieve savings and efficiencies on products and services related to the operation and maintenance of healthcare facilities. 

Benefits Of  Healthcare GPO & FM Partnerships

Further cost savings - By leveraging the collective purchasing power, GPOs and FM's can negotiate lower prices and better terms with suppliers, resulting in significant cost savings and efficiency gains for healthcare providers.  These arrangements can also help healthcare providers streamline their procurement processes and reduce administrative burdens . 

Further improvements to quality and patient care -  By partnering with facilities management companies, GPOs can help healthcare providers access high-quality products and services that enhance the safety, comfort and satisfaction of patients and staff.  Facilities management companies can also help healthcare providers comply with regulatory standards and best practices, as well as implement innovative solutions that improve clinical outcomes and operational performance

Risk mitigation & sustainability  - By outsourcing their facilities management functions to specialized companies, GPOs can help healthcare providers reduce their exposure to operational, financial, and reputational risks.  Facilities management companies can also help healthcare providers achieve their corporate sustainability goals by implementing environmentally friendly practices and technologies that reduce energy consumption, waste generation and greenhouse gas emissions 

Healthcare GPO & CBRE Opportunities

Current Hospital Client GPO Alignment

Current Crossover Spend

Opportunity?

• Clients are accessing GPO contracts for cost savings in facility management in hospital systems where CBRE are not engaged today
• Potential to engage with GPO's and share  data to assist clients while utilizing CBRE’s expertise in FM
• CBRE’s expertise in FM is an alignment opportunity for GPOs
  

MRO

MRO Categories In CBRE

Suppliers / Pricing

Waste Services & Circular Economy

Other Costs To Consider

Suppliers / Pricing

Waste Services & Circular Economy

How To Price Waste & Circular Services

Suppliers / Pricing

Waste Services & Circular Economy

How To Price Waste & Circular Services

Suppliers / Pricing

Page 3 of 4

MRO-017 Ver 1.1 (April 23)

Confidential & Proprietary | 2023 CBRE Inc.

MRO

MRO Categories In CBRE

Suppliers / Pricing

Waste Services & Circular Economy

Other Costs To Consider

Suppliers / Pricing

Waste Services & Circular Economy

How To Price Waste & Circular Services

Suppliers / Pricing

Waste Services & Circular Economy

How To Price Waste & Circular Services

Suppliers / Pricing

Page 4 of 4

MRO-017 Ver 1.1 (April 23)

Confidential & Proprietary | 2023 CBRE Inc.