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Key Points

• Group purchasing organizations (GPOs) help providers access differentiated contract pricing and terms by negotiating on behalf of members’ collective purchasing volume.
• Traditional GPOs typically cover a broad range of supplies and services, while specialty GPOs are built around specialty therapies and drug economics.
• In specialty care, GPO value depends on aligning purchasing behavior with prescribing patterns, utilization trends and manufacturer contract terms.
• Onmark® is McKesson’s GPO focused on helping community-based specialty providers improve the economics of high-cost drug purchasing.

Rising drug costs and operational pressures continue to challenge healthcare providers, particularly in specialty care. One way clinics navigate this complexity is through group purchasing organizations (GPOs), which help practices access more competitive pricing and contract terms by leveraging collective purchasing power.

Understanding how GPOs work and how specialty-focused models differ from traditional approaches can help providers make more informed decisions about their purchasing strategies.

What is a GPO?

A GPO brings together the purchasing volume of multiple healthcare providers to negotiate pricing and contract terms with manufacturers and suppliers. By aggregating demand, GPOs allow clinics and practices to access pricing that may otherwise be unavailable to them.

“Essentially, a GPO is a way to get better pricing on the drugs providers are already purchasing by grouping volume together to create leverage,” said Danyelle Doolittle Brausen, vice president, GPO Provider and Member Engagement, McKesson. “For many independent or smaller practices, that aggregation can make a meaningful difference in managing costs while continuing to operate independently.”

What's the difference between traditional GPOs and Specialty GPOs?

While the core concept of aggregation applies broadly, not all GPOs are the same.

• Traditional GPOs typically focus on a wide range of products and services, such as medical supplies, equipment or general services, and often operate outside of drug distribution.
• Specialty GPOs are deliberately focused on specialty therapies, and designed with specialty practices in mind, where purchasing decisions can be closely tied to precise clinical protocols, unique manufacturer relationships and complex drug economics. They are designed specifically to support specialty practices, such as oncology and ophthalmology clinics, where medication costs represent a significant share of overall expenses.

At McKesson, we operate specialty-only GPOs, which are closely aligned with specialty distribution and focused on drug contracting as the foundation of value. We work with practices to take a more comprehensive view of their purchasing strategy.

What is McKesson’s GPO?

For independent specialty practices, our specialty drug GPO is Onmark®, which focuses on helping community-based specialty providers improve the economics of high-cost drug purchasing through a curated portfolio of specialty drug contracts.

What specialty areas does Onmark focus on?

Onmark is built for advanced specialty areas such as oncology, retina and ophthalmology, rheumatology, gastroenterology and neurology, and it may include both standard contract savings and performance-based opportunities, along with tools that help practices track performance and stay aligned as new therapies launch and contracting changes.

How does specialty GPOs work in practice?

In specialty care, GPO participation often involves aligning purchasing behavior with prescribing patterns, utilization trends and manufacturer contract terms.

Specialty GPO programs, like Onmark United and Onmark Vision, may offer different participation levels or portfolios, sometimes described as “GPOs within a GPO.” These structures allow practices that meet specific performance or utilization criteria to access additional contract opportunities.

How does McKesson help providers navigate GPOs?

Navigating GPO participation can be complex, particularly as contract structures and drug economics evolve. We work with providers to help them understand their options and make GPO participation decisions that align with their practice goals.

This approach typically includes reviewing purchasing data, assessing utilization trends and identifying opportunities to better align providers with available GPO contracts in support of sustainable, high-quality patient care.

"Our ultimate goal is to help providers keep their doors open, treat patients and continue delivering care in their communities,” Doolittle Brausen noted.