When we offered NECAPS GPO Membership to a large, well-established laboratory, we projected the laboratory would realize an annual return of three to four times their Membership fee.

This lab was the largest facility of its kind in its area, and served as the core lab for a consortium of area hospitals. By analyzing their buying patterns, supplier relationships, pricing agreements and equipment infrastructure, we found a variety of opportunities to improve practices to reduce costs.

In just 1 ½ years, this lab realized a return on investment of greater than 10 times their annual Membership fees. This was achieved through careful benchmarking, relationships with NECAPS GPO Supplier Partners, strategic replacement and addition of equipment, participation in NECAPS GPO rebate programs and utilization of NECAPS GPO negotiated pricing.

The net results of this dramatic reduction in lab costs were:

• Enhanced profitability
• Better performance through the introduction of new technology
• Improved materials management processes
• Long term price stability from NECAPS GPO's Supplier Partners
• Expanded test menu
• Productivity enhancements through automation