Date of Award
Executive Doctorate in Business (EDB)
Dr. Denish Shah
Dr. Yichen Cheng
Dr. Yusen Xia
Healthcare Group Purchasing Organizations (HGPOs) can aggregate purchasing volume and leverage this power to influence supply and service expenses for its members. However, all HGPO members do not realize corresponding value across the board, which could be due to hospital characteristics that impact organizational structure positioning some members to better leverage the resources of the HGPO.
This empirical investigation is a quantitative study that examines healthcare provider characteristics associated with influencing supply expense ratio (SER%) for HGPO members that employs the Economies of Scale Theory (EST) as a conceptual framework. EST suggests that increased size and output of the HGPO, decreases the operating cost per purchase venture thereby decreasing the purchase spend for the HGPO member. Utilization of HGPO contracts is a prime example of the EST and is expected to influence supply expense for its members, legitimizing the need to investigate other factors driving SER% and the differentiation seen amongst members. Prior research has shown that certain hospital characteristics can positively or negatively influence the operations and organizational structure of the hospital warranting the focus on this factor (Armansingham et al, 2008). Using two years of supply expense data for 2162 healthcare providers in the U.S, this study investigated whether specific HGPO member characteristics such as (demographic, descriptive, utilization and service-type designation.) can influence the members SER%. This model not only adds pragmatic findings concerning influencers of hospital expense for HGPO members, it also presents a reliable and replicable model for healthcare supply chain researchers and practitioners to further determine how the effective use of HGPOs can be maximized. The strategic design and implementation of this study will provide healthcare supply chain executives, healthcare policy and reform researchers and hospital administrators with new leads of research areas aimed at decreasing the problem of rising healthcare expenditures in the U.S.
Stinson, Kenneth, "Healthcare Group Purchasing Organizations: Who’s Really Saving? An Empirical Investigation of Hospital Characteristics That Influence Supply Expense for Healthcare GPO Members." Dissertation, Georgia State University, 2019.
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