Frequently Asked Questions
If you don’t see the answer below to your question please feel free to contact Navigator GPO.
What is a group purchasing organization (GPO)?
A group purchasing organization (GPO) is an entity that is created to leverage the purchasing power of a group of business to obtain discount or preferred pricing from vendors based on the collective buying power of all the GPO members.
What differentiates Navigator from other Group Purchasing Organizations?
Navigator differentiates itself from other GPO’s by limiting the number of vendors and manufacturers it contracts with. By doing this, Navigator can successfully leverage the 1.5 million Long-Term Care (LTC) membership beds and successfully negotiate competitive contracts based on compliance and a stronger commitment of our members. Navigator is one of a few GPO’s that can negotiate with committed business, which in turn creates a better program for their membership.
Is there a cost to join and do I have to comply at a certain level? There is no annual or monthly fee to use one or all of Navigator vendors. Whether you choose to use one or all of our contracts, Navigator will provide a complete vendor cost analysis for any facility, showing the value of the contracts to your current spend as well as provide recommendation to help you manage your spend and decrease your total cost.
What is a Safe Harbor GPO and is Navigator a Safe Harbor GPO?
Enacted in 1987, the Medicare and Medicaid Patient Protection Act permit GPOs to charge administrative fees to suppliers for providing services. In 1991 Health and Human Services instituted Safe Harbor regulations which allow GPO’s to provide goods or services to a health care provider as long as both of the two standards are met – (1) The GPO must have a written agreement with each health care provider, that provides for either of the following agreements: (a) The vendor from which the health care provider will purchase goods or services will pay a fee to the GPO of 3 percent or less of the purchase price of the goods or services provided by that vendor, and (b) In the event the fee paid to the GPO is not fixed at 3 percent or less of the purchase price of the goods or services, the agreement specifies the exact percentage or amount of the fee. (2) The GPO must disclose in writing to the health care provider at least annually, the amount received from each vendor with respect to purchases made by or on behalf of the health care provider.
Navigator is a Safe Harbor GPO. Annual reports are sent to all members detailing all purchases made through Navigator vendors with the corresponding fees collected from each vendor.
Ready to Get Registered?
Simply click here to begin the registration process with Navigator GPO.