{"id":9423,"date":"2020-12-01T00:00:00","date_gmt":"2020-12-01T08:00:00","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=9423"},"modified":"2022-06-15T17:46:40","modified_gmt":"2022-06-15T17:46:40","slug":"gpo-veterinary","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/gpo-veterinary\/","title":{"rendered":"Crowd Pleasers"},"content":{"rendered":"

Viviana Burgos, the practice manager and co-owner of Eagle Fern Equine Hospital in Estacada, Oregon, knows that running a large clinic is expensive, but she instantly cut some bills when she joined The Veterinary Club about a decade ago.<\/p>\n

\u201cI had just purchased the practice and was trying to save every penny I could, but there are things you need to keep a business running,\u201d Burgos said. \u201cA GPO [group purchasing organization] is a great way to help. They are not just for the small animal clinics.\u201d<\/p>\n

By joining The Veterinary Club, a national GPO based in Middleburg, Virginia, Burgos saved money in numerous categories. She received 22% off her Verizon phone bill, plus big discounts at Office Depot and on the purchase of radiation badges and diagnostic equipment.<\/p>\n

\u201cWe have a 50% discount on paint at Sherwin-Williams, so we took advantage of that several times and keep the clinic looking good,\u201d she said. \u201cYou can also save some money on credit card processing fees. Every little bit counts so that we can be more profitable and spend more on the clinic.\u201d<\/p>\n

Burgos, who owns Eagle Fern with her veterinarian husband, David Asmar, DVM, is among the thousands of veterinary GPO members. Fewer than 10 such organizations operate across the United States.<\/p>\n

Essentially, a GPO brings practice owners together as a large entity that negotiates prices and terms with distributors, manufacturers and service providers. Independent and small-chain practice owners are able to narrow the gap with the meganetworks, which commonly enjoy bulk discounts.<\/p>\n

\u201cA GPO helps organizations … realize savings and efficiencies by aggregating purchasing volume and using that leverage to negotiate discounts with manufacturers, distributors<\/a> and other vendors,\u201d said Bryan Benitz, managing partner of The Veterinary Club. \u201cWe can help organizations with contracting and sourcing on strategic categories that may or may not be covered under an existing contractual agreement.\u201d<\/p>\n

AAHA, VHA and TVC<\/h3>\n

The American Animal Hospital Association started a GPO program, AAHA Advantage, in 2017.<\/p>\n

\u201cBy helping AAHA-accredited practices become more financially sound and giving them access to the products and services they use daily, AAHA provides its members with the tools and savings necessary to be successful in delivering excellent care for their patients,\u201d said Nathan Chambers, the association\u2019s strategic business manager.<\/p>\n

AAHA Advantage, like all GPOs, negotiates exclusive discounts, preferred pricing and rebates from vendors and passes the savings on to members.<\/p>\n

The Veterinary Hospitals Association, which started in 1984, is the oldest veterinary GPO. Jeff Benson, executive director of the Minnesota-based VHA, considers it a hybrid group purchasing organization, with 415 member clinics, a warehouse with drivers and vans, and an onsite pet crematory.<\/p>\n

\u201cAbout five years ago, we started a business services division and can provide clinics with bookkeeping<\/a>, payroll, social media marketing programs, recruiting and financial support,\u201d Benson said. \u201cWe try and cover a little bit of everything. We have about 2,000 SKUs in our warehouse, and the rest we get from distributor partners.\u201d<\/p>\n

VHA partners with three distributors. Members can place an order and have it delivered from the warehouse or drop-shipped from the distributor.<\/p>\n

\u201cWe\u2019re not just product-based. We have business service support and our own staff, so you can call us and ask questions,\u201d Benson said. \u201cVets have to decide if they want [a GPO] more full-service oriented or not.\u201d<\/p>\n

The Veterinary Cooperative, founded in 2012, doesn\u2019t do any warehousing but does offer discounts and rebates to its 4,000 members.<\/p>\n

\u201cOur key differentiator has to do with the term \u2018cooperative,\u2019\u201d said Nick McCart, vice president of the Evanston, Illinois-based TVC. \u201cAll the profit that our organization makes is returned to the owners, so that\u2019s different than our friends at the other GPOs. We have returned millions of dollars in profits over the years to our hospitals.\u201d<\/p>\n

TVC members pay a one-time, lifetime fee that grants access to discounts and dividends. TVC also offers business training as well as a members-only conference and free continuing education.<\/p>\n

Evening the Playing Field<\/h3>\n

GPO leaders noted that membership isn\u2019t all about finding great prices and discounts. Those can change constantly.<\/p>\n

\u201cGPOs and cooperatives exist to even the playing field for independent businesses against a continual corporatization of the business landscape in the U.S.,\u201d said Steven Manyak, DVM, the owner of Pine Animal Hospital in Long Beach, California.<\/p>\n

Dr. Manyak, a member of The Veterinary Club, said all the organizations do a lot of good.<\/p>\n

\u201cIt\u2019s been an important part of our success as it\u2019s helped keep costs down and allowed us more time to focus on what we need to focus on,\u201d he said.<\/p>\n

Rolando \u201cRo\u201d Pansoy Jr., the manager of purchasing and inventory at SAGE Veterinary Centers in Northern California, counts four key benefits of joining a GPO:<\/p>\n