[Installment 3] Cracking The Code: Winning in IDN/GPO Contracting with an Informed Strategy
INSTALLMENT 3
In Installment 3 of this 5-part blog series, we look at the third of five surveys conducted by Excelerant Partner David Stone to gain a better understanding of why it is more challenging than ever to gain access to, go to contract with, and retain agreements with Group Purchasing Organizations and Integrated Delivery Networks.
CRACKING THE CODE
WINNING IN IDN/GPO CONTRACTING WITH AN INFORMED STRATEGY
By DAVID STONE
Partner
[May 12, 2025] — For suppliers seeking to secure new agreements and grow existing contracts with Integrated Delivery Networks [IDN] and Group Purchasing Organizations [GPO], the path to success is filled with challenges — but also incredible opportunities.
Whether you’re a large supplier aiming to expand your footprint, or a smaller company striving to establish a foothold, understanding the GPO/IDN contracting process is essential to short- and long-term success.
As you’re well aware, today’s healthcare landscape is changing rapidly and dramatically. Budget constraints, new competitors, IDN consolidation, data-driven decision-making, and the rapidly accelerating shift from fee-for-service to value-based care are all converging to make it more difficult than ever to secure and sustain contracts. The impact of tariffs on pricing is still a little unclear but is certainly causing concern for all involved – whether you’re trying to land on the proper price to offer or are on the purchasing end of the equation.
More than ever, decision-makers and influencers demand suppliers present a more data-driven clinical Value Proposition, as well as evidence-based ROI projections. And of course, you’ve got to convincingly differentiate your innovation as a solution that delivers improved patient outcomes, greater value, and enhanced operational and user efficiencies. Again, these must be backed by solid, contemporary data.
In a procurement-heavy environment, having strong relationships with decision-makers and understanding how to navigate myriad GPO/IDN processes are also critical for success. Gaining favor in today’s competitive marketplace is like a round of Texas Hold ‘Em. The rules are straight-forward but assembling the right strategy and laying a winning hand that meets multiple expectations can be daunting.
To better understand these evolving dynamics, I recently conducted five LinkedIn surveys with National Account Managers and healthcare sales professionals. The results provide a real-time reading on the most pressing challenges and priorities shaping the future of IDN and GPO contracting.
Let’s see how our voters feel about the role of GPOs as part of your contract strategy in 2025 …
SURVEY # 3: FRIEND OR FOE: HOW YOU VIEW GPOs IN YOUR CONTRACTING STRATEGY
Group Purchasing Organizations [GPO] play a massive role in healthcare contracting – but are they helping or hurting suppliers? While GPOs can offer access to large health systems, they also create barriers with complex contracts, compliance requirements, multi-layered member management hierarchy, and competitive pricing pressures.
POLL SAMPLING
Survey Views: 1,554 National Account Managers, Sales Professionals
Voters: 79
Response Rate: 5.0%
Q: How do you view GPOs in your contracting strategy?
42% Essential partners for scaling growth
GPOs drive volume and access to IDNs
22% Necessary but difficult to work with
They open doors but require careful strategy
23% Increasingly less relevant due to IDN consolidation
IDNs are taking more control of purchasing
13% More barriers than benefits
The cost, complexity, and competition outweigh the gains
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Key Insight
GPOs remain essential … but not without some friction
In our survey on GPO strategy, 42% of respondents viewed GPOs as essential partners for scaling growth by providing access to multiple health systems and driving volume. However, GPOs are not without challenges — 22% of respondents acknowledge that while GPOs open doors, they demand careful strategy and management to navigate the aforementioned considerations such as complex pricing tiers, contract terms, multi-layered member management hierarchy and compliance requirements
Key Takeaways
GPOs remain a powerful entry point for suppliers, but success requires more than just securing a contract. Suppliers must balance GPO relationships and IDNs, along with their own performance growth initiatives, ensuring contract compliance, and actively driving adoption across the network.
Additionally, 23% of respondents noted that GPOs are becoming less relevant due to IDN consolidation, and new Provider-Owned GPOs [POGPO] such as Advantus Health Partners, which means suppliers must incorporate a multi-channel approach that considers GPO, IDN and POGPO dynamics.
Notable Feedback
“I firmly believe that GPOs remain essential partners for growth, not just because of their contracting power but because of their ability to align suppliers with the evolving needs of both health systems and individual providers. While they can present complexities – tiered pricing, compliance hurdles, and utilization challenges – their value lies in the access, credibility, and scalability they provide.
“Success in the GPO space isn’t just about securing a contract, it’s about leveraging the partnership to drive long-term alignment, data-driven decision-making, and a forward-looking strategy. Suppliers who anticipate where their customers will be in 2,3, or 5 years – rather than just meeting today’s need – will be the ones who truly maximize their GPO relationships.”
– Melanie Sweeny, National Account Manager
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“That’s an excellent question, David. I would add the phrase ‘on any given day’ friend or foe, depending on who you meet with.” – Bob Acosta, Senior Vertical Alliances Manager
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“Great topic and poll, David. I am interested to hear more from those who believe impact is muted as IDNs consolidate.” -- Ben Westra, Director of Business Development
Final Thoughts
Depending on your perspective, GPOs are either a necessary evil or a powerful pathway to product commercialization … but not without certain hurdles to clear along the way. Today’s suppliers must accept 2025’s realities, and may even have to tweak their feelings towards the role of GPOs in your contract strategy, especially given increasing consolidation of IDNs, as well as the emergence of POGPOs.
Like your morning routine, you dress for that day’s weather, understanding what worked yesterday may not work today and what works today may not be appropriate tomorrow. Stay hyper-tuned to today’s market and your journey will likely be smoother, more satisfying and, ultimately, successful. [And don’t forget to check the forecast for future conditions.]
Having the right partner to guide you enhances your likelihood of successfully winning, executing and retaining IDN and GPO contracts. Contact Excelerant today at info@excelerantconsulting.com
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[In Installment 4, we’ll look at the results of our next survey entitled, “How Are You Overcoming Budget Constraints in Healthcare Sales?”]
info@excelerantconsulting.com
ABOUT DAVID STONE
David has a proven background in sales, sales management, national accounts and national accounts team management. His areas of expertise include clinical laboratory diagnostics, remote patient monitoring, surgical device, advanced wound care, medical disposables and clinical nutrition. David has spent more than three decades creating and cultivating key relationships within the U.S. healthcare industry, including Group Purchasing Organizations, Integrated Delivery Networks and Regional Purchasing Coalitions.
He facilitates executive-level introductions and provides assistance with value proposition design, market development, product launch, sales strategy, strategic account segmentation, field sales optimization, offer development and contract negotiations. Most recently, David worked at Coloplast, Mölnlycke and Medtronic. His primary focus is to use his wide-ranging background to help Excelerant clients experience meaningful growth and margin enhancement.
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ABOUT EXCELERANT CONSULTING
Excelerant Consulting is the go-to organization for med-tech companies that need to position products and services successfully for value analysis committees, contract acquisition, and sales modeling and execution to commercialize the launch of medical devices or services with Group Purchasing Organizations [GPO], Integrated Delivery Networks [IDN], or Regional Purchasing Coalitions [RPC]. Our clients rely on us to enhance their product positioning, navigate corporate contracting opportunities, and provide sales support to accelerate sales growth.
For more info, contact Excelerant Consulting at info@excelerantconsulting.com.