Do you know how much you should be saving on costs from using a group purchasing organization (GPO) such as MGMA BestPrice? 

It’s the right question to be asking at the right time: The latest MGMA DataDive Financials & Operations data report shows expense pressure persists, and MGMA Stat polling earlier this year found 90% of practices reported higher operating costs this year, a trend that threatens already-tight margins heading into 2026.  

The report’s specialty snapshot underscores how sensitive spread is to cost creep: 2024 medians show operating spreads of roughly $195,000 in primary care, $228,000 in surgical and $328,000 in nonsurgical; a routine +5% cost surge can compress those spreads by tens of thousands of dollars.  

A Sept. 16, 2025, MGMA Stat poll found that 78% of medical group leaders report their organizations use a GPO, while 18% do not, and another 4% were unsure. The poll had 381 applicable responses. 

While there is widespread use of GPOs in medical group practices, a clear understanding of the scope of savings from GPO utilization was missing: About two‑thirds could not quantify savings.  

Roughly one‑third provided figures, as percentages and dollar amounts: Percentage estimates ranged from 3%–4% on the low end to 30% on the high end, with several citing 5%–10% as typical. Several respondents added that they haven’t reviewed savings recently, underscoring the need for a consistent method to track GPO value. 

Why GPOs matter now 

A GPO pools the purchasing volume of thousands of sites to negotiate better unit pricing, contract terms, and service levels than a single practice could obtain on its own. That’s why most medical groups already participate. An MGMA and MGMA BestPrice whitepaper earlier this year found that most practices use one or more GPOs, and about half of GPO users route most purchases through their GPO or distributor. Top-ranked benefits include cost savings/bulk discounts (88%), contract negotiation and vendor management (47%), and supply-chain resilience (26%).  

The financial playbook for 2026 makes GPOs a core lever. MGMA’s data report conclusion calls out “rationalizing nonlabor spend (formulary discipline, contract rebids, licensing audits)” as one of four moves to protect margin next year — work that accelerates with a strong GPO partner.  

A practical guide: Using a GPO to bend your non-labor cost curve 

1. Baseline and benchmark. Many organizations aren’t measuring supply efficiency with rigor: fewer than 1 in 10 benchmark supply costs regularly, and almost six in 10 do not benchmark at all. Start with the prior 12 months of spend by category and vendor, then benchmark against negotiated GPO prices to create a defensible “savings from addressable spend” number. MGMA BestPrice offers a savings calculator to make this first pass fast and transparent.  
2. Standardize what you buy. Once you see price deltas, lock in a streamlined formulary (gloves, syringes, exam room disposables, common diagnostic supplies) and commit volume to earn tiered pricing. Use the GPO’s contracting muscle to align vendors and reduce “preference drift.” The survey shows practices value precisely these capabilities — bulk discounts and contract negotiation — to neutralize inflationary pressure. Set a buy-through target (e.g., ≥80% of addressable SKUs on contract) and publish it on clinic scorecards.  
3. Guard against fees and leakages. Leaders report new fuel surcharges and delivery fees in 2025 that blunt headline price cuts. Ask your GPO to include surcharge controls and delivery-fee caps, and audit invoices monthly for off-contract buys and addons. Reroute high-leak categories to contracted substitutes or escalate for clinical review if alternatives are not acceptable.  
4. Build resilience where shortages hurt most. Nearly half of respondents said a specific supply disruption affected patient care in the past year. Use your GPO’s analytics to diversify sources or establish backup SKUs in higher-risk categories such as radiologic contrast, endoscopy equipment, disposable surgical instruments, and electronics-dependent devices (e.g., Holter monitors). With tariff policy volatility, GPOs can also help pre-negotiate alternatives or buffer inventory on items most exposed to import costs.  
5. Measure savings like a CFO. Tie GPO work to a short list of KPIs you can review quarterly: nonlabor cost per FTE clinician, supply cost per wRVU, buy-through rate on contracted SKUs, and realized savings versus benchmark. Leaders who track non-labor cost per FTE and adjust quarterly help keep realized savings from leaking away.  

Where MGMA BestPrice fits 

The spring 2025 MGMA–MGMA BestPrice research confirms that GPO participation is widespread and valuable, especially for small and midsize groups that lack direct scale. Beyond price, respondents point to resilience, logistics support, and data/benchmarking as material benefits. MGMA BestPrice layers on practical features — no enrollment fees or minimums, quick enrollment, and continued ordering through your distribution reps — so you capture price without disrupting operations. Many MGMA members save up to 20% on medical supplies through MGMA BestPrice, a useful benchmark when you model your upside.  

Bottom line 

Heading into 2026, revenue growth is uneven, costs are still rising, and every point of non-labor spend you can remove preserves spread. Pair that mandate with the GPO tactics above and you’ll have more margin room to invest where your practice grows.