Consorta delivers savings of $3.1 Million on CT and MRI equipment from GE Medical Systems

Group Buy Process is a Win for Suppliers and Health Providers

Twenty-four Consorta members purchased $31.5 million in GE products recently and everyone got the best deal. How? Through Consorta's group buy process, which calls for members to make up-front commitments and agree to complete their capital purchases within a defined time period. In this group buy, Consorta brought participants an average savings of 9% over their best existing quote.

The CT-MRI Group Buy consolidated purchases of 22 CT scanners and 8 MRI systems manufactured by GE Medical Systems, Waukesha, Wisconsin. Tom Koppa, a corporate account manager for GE, commented: " Once again, the Consorta Group Buy process has delivered value. This process helps GE to connect with more customers with intentions to buy, in a shorter time frame than we are able to achieve on our own. The program allows us to deliver aggressive pricing to committed participants. This, in turn, helps to further differentiate us from our competition--because of the savings available customers will often pick up a few extra performance packages they might not otherwise have planned for. This way, everyone wins! We appreciate the opportunity to participate in the Consorta Group Buys."

Consorta members have saved $13.2 million from seven completed equipment group buys. Typically, each participating facility achieves of 8 to 10% over the best-anticipated market price for the specified equipment. Average savings for a single facility are $127,000. Final pricing packages assure that members have the best market price available on the equipment purchased, extended warranty options, improved service contracts and exceptional financing, too.

Among the participants in the GE group buy was All Saints St. Mary Medical Center, Racine, Wisconsin. Jim Gay, the director of materials management for the facility, noted: "The process worked extremely well for us. I think all parties involved were winners in the end. We decreased the overall cost of our CT acquisition by about $80,000 because of the group buy, which certainly demonstrates the effectiveness of the concept."

Pam Parker directs the group buy program for Consorta. She has more than 20 years experience in the imaging field and has spent the past 14 years working with GPOs.

Parker believes the group buy process is a great technique, saying, " this process works well for major equipment purchases. The Consorta membership encompasses 320 acute care facilities and more than 800 alternate care sites, so we repeat group buys for major equipment as needed. Our familiarity with the various modalities, with emerging technologies and with the marketplace, means we can deliver great results again and again, relieving providers of a difficult and time-consuming task, while assuring that they get a great price."

Consorta recently rolled out group buy opportunities for personal computers and nuclear medicine. The group buy for personal computers is one of Consorta's first group buys for non-imaging products. Other group buys for non-imaging categories will be targeted in the coming months. For more information about Consorta visit www.consorta.com.

Source: Consorta

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