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FAQs About Switching to a GPO for Senior Living Communities

November 13, 2024
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Thinking about transitioning to a Group Purchasing Organization (GPO) for your senior living community?

Here’s a quick and easy breakdown of what you need to know!

What’s a GPO?

A GPO, or Group Purchasing Organization, uses the combined buying power of its members to score better deals on products and services. In senior living, a GPO helps communities save big on everything from food to medical supplies by negotiating lower prices with suppliers.

Why Should Senior Living Communities Consider a GPO Like Entegra?

  • Save Money: GPOs like Entegra negotiate major discounts, helping you lower your costs across the board.
  • Save Time: With a GPO, the procurement process is streamlined, so you’ll spend less time shopping around and more time focusing on your community.
  • More Supplier Options: Entegra connects you to a wide range of suppliers, offering more choices and better deals.
  • Stay Compliant: GPOs help ensure you’re meeting all industry standards and regulations, making compliance easier.

Many senior living organizations use GPO contracts within various purchasing categories to enhance procurement efficiencies and benefit from negotiated savings structures. Though the potential for savings varies by organization, most senior living facilities target high-volume expenses that affect day-to-day operations.

 

Procurement Category 

Common Purchases 

Potential Benefits 

Food & Beverage 

Produce, dairy, beverages, pantry items 

Improved cost control and savings consistency 

Medical Supplies 

PPE, gloves, healthcare products 

Simplified sourcing and supplier access 

Janitorial Supplies 

Cleaning chemicals, paper products, sanitation supplies 

More efficient purchasing processes 

Laundry & Linens 

Bedding, towels, uniforms, laundry services 

Standardized procurement across departments 

Office Supplies 

Administrative and workplace essentials 

Reduced purchasing complexity 

Facility Maintenance 

Maintenance and repair supplies 

Better supplier coverage and contract support 

The use of GPO contracts in various categories will make it easier for senior living facilities to develop an effective procurement process.

When Is the Right Time for a Senior Living Community to Join a GPO?

Senior living organizations often consider joining a Group Purchasing Organization (GPO) when managing procurement internally becomes more complex, time-consuming, or costly. While every organization has unique needs and priorities, certain challenges may indicate that partnering with a GPO could help improve purchasing performance and operational efficiency.

Common Circumstances Where Joining a GPO Makes Sense

A senior living organization may benefit from joining a GPO when it experiences:

  • Rising costs for food, supplies, and operational expenses
  • Significant time spent managing supplier relationships and negotiations
  • Inconsistent purchasing practices across departments or locations
  • Expansion into additional facilities or communities
  • Increasing administrative demands related to procurement activities
  • A leadership goal to improve purchasing performance and achieve greater cost control

Recognizing these signs can help senior living organizations determine whether a GPO partnership aligns with their operational goals and long-term strategy.

How Can Senior Living Communities Get the Most Out of a GPO Like Entegra?

  • Get Involved: Stay engaged with your GPO and share feedback about your community’s specific needs.
  • Use the Resources: Take full advantage of the tools and services Entegra offers, from contract management to compliance support.
  • Train Your Team: Make sure your staff knows how to use the GPO’s services to their fullest potential.

Key Factors to Consider When Choosing a GPO for Senior Living

Not all Group Purchasing Organizations (GPOs) offer the same suppliers, contracts, services, or level of support. Before selecting a partner, senior living organizations should evaluate how well a GPO’s capabilities align with their operational needs, goals, and long-term strategy.

Key Things to Consider When Comparing Different GPOs

Senior living organizations should evaluate:

  • The range of supplier contracts available across key purchasing categories
  • Contract terms, participation requirements, and flexibility
  • Reporting tools and purchasing analytics capabilities
  • Onboarding, implementation, and ongoing support services
  • Experience working with senior living communities and related industries
  • The ability to support future growth and changing operational needs

Taking the time to evaluate these factors can help senior living organizations choose a GPO partner that delivers value today while supporting their future success.

What Should You Keep in Mind When Transitioning to a GPO Like Entegra?

  • Manage Change: Switching to a GPO might mean adjusting the way you currently do things, but with proper planning, it’ll be a smooth ride.
  • Negotiate Smart: While GPOs simplify contract negotiations, collaborating with suppliers to align on details will maximize your benefits.

How GPOs Support Multi-Location Senior Living Organizations

Managing procurement across multiple senior living communities can create additional challenges, including maintaining consistent pricing, coordinating supplier relationships, and evaluating purchasing performance across locations. GPOs help simplify this process by providing centralized purchasing programs and supplier agreements that can be implemented across multiple communities.

How GPOs Can Help Multi-Location Organizations

GPO partnerships can help senior living organizations:

  • Standardize purchasing programs across all communities
  • Achieve more consistent pricing through negotiated supplier agreements
  • Reduce the time spent managing multiple suppliers and contracts
  • Improve visibility into purchasing activity and spending patterns
  • Simplify contract management across different locations
  • Support expansion by providing scalable procurement solutions for new communities

By creating a more consistent and centralized procurement strategy, GPOs help senior living organizations improve operational efficiency, strengthen supplier relationships, and better manage purchasing across multiple locations.

By keeping these tips in mind, your senior living community can transition smoothly to a GPO like Entegra and enjoy major savings, efficiency boosts, and regulatory support.

Curious about how Entegra can help your community? Contact us today to learn more about the benefits of GPO membership!