Two basic fundamentals have held true over time:
• Big fish eat the little fish. Big fish get bigger.
• Employers expect maximum return on their benefits spend.
These are the basis on which group purchasing was founded. For centuries, entities have banded together to pool their resources to achieve common goals. This edition of Get More focuses on the composition of these strategic groups and how producers and carriers are working to satisfy their unique needs in the benefits marketplace.
The Power of Purchasing Groups
Familiar with the names Hertz, Neiman Marcus, Toys “R” Us, RJR Nabisco or Motorola? If yes, then you may know more than you think about purchasing groups. Today companies are being asked to do more with less which is forcing both benefit and purchasing professionals to look for opportunities to create more cost-efficient solutions.
One of the primary advantages of purchasing groups is that they allow members to access already negotiated master contracts.2 While group purchasing has been around for some time, they have been most prevalent in the healthcare and education industries.3 Today, we see such groups in all industries and in many different forms. There are three major structures of purchasing groups:
• Consortiums
• Private equity firms
• Group purchasing organizations
Read this entire white paper: https://web1.lifebenefits.com/lb/pdfs/GetMore15.pdf
Read this entire white paper: https://web1.lifebenefits.com/lb/pdfs/GetMore15.pdf
