The role of pharmacy Group Purchasing Organizations (GPOs) has evolved significantly over the past decade. While their primary objective remains aggregating store volumes to negotiate the best cost of goods (COGs) with primary wholesalers, shifting market dynamics have introduced new challenges and opportunities. To stay competitive and relevant, today’s buying groups must go beyond pricing and offer expanded support to independent pharmacies. Here’s what to look for in a quality pharmacy GPO partner:
A strong buying group provides leverage and protection through sourcing agreements negotiated on behalf of its members. By consolidating purchasing power, these organizations help maintain operational efficiency across the drug supply chain. An effective GPO partner should have a deep understanding of drug sourcing complexities, ensuring that independent pharmacy owners can navigate industry challenges with confidence.
With increasing network exclusions, declining reimbursements, and excessive audit procedures, legislative advocacy is now a crucial component of a GPO’s value proposition. Whether addressing commercial claims and Medicaid at the state level or staying ahead of federal regulatory trends, a competent GPO remains actively engaged in policy efforts. Many have dedicated representatives who communicate with legislators and collaborate with organizations like NCPA to support political action committee (PAC) funding.
Running a successful pharmacy requires more than just negotiating COGs. Independent pharmacy owners don’t have the time to vet thousands of potential vendors. A well-established GPO screens vendor partnerships and selects those aligned with community pharmacy standards, streamlining access to high-quality products and services.
Technology and data analytics are becoming critical in pharmacy operations. Today’s leading GPOs focus on identifying technology solutions that enhance pharmacy services, optimize workflows, and improve data-driven decision-making. Whether it’s integrating new software, tracking key performance indicators, or expanding clinical services, a progressive GPO helps its members stay ahead of the curve.
Pharmacy owners and staff may not always need in-person visits, but having a dedicated point of contact for questions and challenges is invaluable. The complexity of the pharmacy business requires consistent service, timely updates, and expert guidance. A top-tier GPO ensures its members receive reliable support, helping them navigate operational hurdles effectively.
As pharmacy reimbursement models shift and PBMs continue to cut margins, independent pharmacies must explore new revenue streams. A GPO that provides clinical education and implementation support can help pharmacies expand their service offerings within the scope of practice, ensuring long-term sustainability and profitability.
Pharmacy GPOs are no longer just about cost savings; they are strategic partners that help independent pharmacies thrive in a rapidly evolving industry. By selecting a GPO that offers comprehensive support—from pricing and advocacy to technology and clinical services—pharmacy owners can position themselves for sustained success in today’s competitive landscape.