Group Purchasing

Intalere Update: Planned Acquisition Will Drive Value, Expand Supply Chain Capabilities

HSIsolutions and Intalere

HSIsolutions is proud to partner with Intalere, a national healthcare group purchasing organization (GPO), to reduce healthcare costs and improve healthcare quality. Together we serve acute and non-acute healthcare providers in North Dakota, South Dakota, Minnesota, and parts of Montana and Wyoming.

What is a GPO?

A GPO (group purchasing organization), such as Intalere, helps healthcare providers realize savings by aggregating purchasing volume and using that leverage to negotiate discounts on behalf of members with manufacturers, distributors and vendors. GPOs work with healthcare providers to save money on virtually everything they buy.

HSI Group Purchasing Division TerritoryWhat is HSIsolutions Group Purchasing Division?

HSIsolutions Group Purchasing Division is a Strategic Marketing Affiliate of Intalere.

What is HSIsolutions Group Purchasing Division's servicing territory? 

HSIsolutions Group Purchasing Division now serves well over 200 healthcare facilities in the Dakotas, Minnesota, Eastern Montana and NE Wyoming.

How does HSIsolutions Group Purchasing Division communicate with its members?

HSIsolutions Group Purchasing Division communicates with its members via Intalere regional sales reps through on-site visitation. Annually, our convention and vendor trade show, “UPDATE” is held which offers many educational offerings for attendees of all areas in a healthcare facility. Both HSIsolutions Group Purchasing Division and Intalere use multiple forms of electronic mediums to communicate with the membership.

Contact Us

To obtain additional information, please contact John Schreier at 1-800-548-2744 or via email at

About Intalere

As a leading national healthcare supply chain organization, Intalere believes the only path that’s right for your healthcare facility is the one designed only for you. Intalere will help you create that path and then follow it confidently with the right mix of tools, guidance and ongoing support. We promise a commitment to listen, create and deliver what no other healthcare solutions organization will: An answer as original as each member we serve.

Intalere partners with you to overcome every challenge by engineering a precisely tailored solution that is wholly and solely yours. With better product standardization and utilization, new financial tools beyond contracting and alliances like this one that help lower costs, raise revenue and champion quality, Intalere enriches healthcare supply chains for its members and the communities they serve.

How Can Joining Intalere Benefit You?

Intalere currently has more than 1,500 contracts available. This means you can immediately start saving on items you use every day, like exam gloves, hand sanitizers, alcohol prep pads, exam sheets, test kits and so on. In addition, its supply chain solutions include pharmacy products, a nutrition program, medical equipment, office suppliers and much more.

How is group purchasing used in healthcare?

Hospitals and other healthcare providers use group purchasing to obtain the products they need at the best price. Overall, about 72 percent of purchases that hospitals make are done using GPO contracts.

How do GPOs save money for healthcare facilities?

Because they represent many healthcare facilities, GPOs offer economies of scale to the healthcare supply chain. By aggregating the purchasing power of its members, GPOs help balance the negotiating equation between providers and suppliers.

How much money do GPOs save its members?

GPOs save its members from 10 to 15 percent off their purchasing costs. Overall, this means GPOs enable members to save as much as $33 billion each year through lower product prices.

Additionally, GPOs provide valuable cost-avoidance savings to its members and other providers by helping them standardize and streamline their purchasing, as well as reduce the number of F.T.E employees that healthcare providers must dedicate to negotiate competitive purchasing agreements.

How does group purchasing work?

Intalere uses healthcare providers to qualify group purchasing selections in a committee setting comprised of healthcare professionals, such as doctors, nurses and other clinicians. These committees help determine which medical supplies are most appropriate from a clinical standpoint. Once quality decisions are made, GPOs work to negotiate contracts with healthcare manufacturers, distributors and other suppliers.

After a group purchasing contract is created, it is still up to the member to decide which product is most appropriate in each circumstance and make the most appropriate purchase. GPOs do not purchase any products. They negotiate contacts that members can use when making their own purchases.

What healthcare entities utilize group purchasing services?

All types of healthcare organizations use group purchasing. Nearly every hospital in the U.S. (approximately 96 to 98 percent) chooses to utilize GPO contracts for their purchasing functions. Additionally, estimates are that hospitals nationwide use, on average, at least two and as many as four GPOs per facility. A growing portion of the long-term care, ambulatory care, home care and physician practice markets is using group purchasing to help lower costs and improve efficiency.

Are there different types of GPOs?

If you have seen one GPO, you have really only seen one GPO. They vary greatly in size, type of ownership and the services they offer their members. Established in June 1986, Intalere has set the standard for integrity and customer service, maintaining it for over two decades.

What services do GPOs provide beyond volume discounts?

Hospitals and other healthcare providers are increasingly relying on GPOs to help manage the complex system of purchasing. Many GPOs offer members e-commerce solutions to help manage their purchasing. The GPO community is also a leader in the effort to reduce medical errors by helping to standardize some of the product use in healthcare facilities, educating clinicians on best practices and leading the drive to institute bar coding for medical products.

How are GPOs financed?

Generally GPOs rely, in part, on fees paid by suppliers to finance the services the GPOs offer healthcare providers. “Administrative fees” are generally based upon the purchase price that the healthcare provider pays for a product purchased through GPO contracts. The fee is paid only after a GPO's provider-member has been credited through the vendors for utilizing a GPO contract. Individual members may also pay a membership fee.