As the demand for outpatient care grows, so does the demand for new construction. Recent research projects the ambulatory surgery center (ASC) market to grow 21% by 2029—driven by the increasing demand for outpatient surgical procedures and rising patient preferences for these settings.
When ASCs plan to build, expand or remodel their facilities to meet this rising demand, the focus tends to land squarely on architects and contractors. Yet, there’s a powerful strategic partner too often left out of the equation—group purchasing organizations (GPOs).
ASCs and other outpatient care facilities operate in a highly cost-sensitive environment. They need to manage lean margins and enhance patient outcomes without breaking their budgets. In these circumstances, GPOs are commonly viewed as a tool for securing better pricing on everyday medical supplies. However, this perception undersells the key role a GPO can play in capital projects.
“There’s a lot of opportunity for non-acute facilities to engage GPOs in what most think of as ‘nontraditional’ contracts,” said Paige Dodson, Senior Director of Construction and Facilities Solutions at HealthTrust. “That includes areas like elevators, doors, drywall, HVAC, lighting—everything tied to the bricks and mortar of a facility.”
The Strategic Value of GPO Contracts
From flooring to mechanical equipment, GPOs leverage national scale to secure competitive pricing on building materials that a standalone ASC or outpatient network would typically not be able to obtain. However, the primary value proposition of a GPO isn’t limited to price. By aggregating the buying power of thousands of members and augmenting with support for complex projects, GPOs can also offer ASCs:
- Industry Expertise and Market Visibility: GPOs bring deep knowledge and robust data analytics for vendor capabilities, regional price trends and contract terms—protecting non-acute care facilities from hidden costs or unfavorable conditions.
- Streamlined and Compliant Procurement: With standardized terms and pre-negotiated contracts, GPOs simplify the sourcing process and reduce administrative burden while maintaining regulatory compliance, which is important for ASCs where staff are often wearing multiple hats.
- Risk Mitigation: GPOs can limit exposure to vendor performance issues or cost overruns, especially as construction costs continue to rise, by holding suppliers accountable to clearly set contract expectations and deliverables.
- Cross-Facility Standardization: If an ASC is part of a broader network, GPOs can standardize materials and design across facilities to ensure consistent patient experiences.
GPOs have a long-standing role in driving clinical and consumable supply chains, so healthcare organizations don’t often view capital projects through the same procurement lens. In addition, construction, remodeling and expansion projects occur less frequently and often fall outside the purview of healthcare supply chain professionals. Overlooking the role a GPO can play in means missing out on significant value – especially when speed to market is critical.
“Many leaders don’t realize their GPO can provide contract access that touches almost every element of a capital project,” Dodson explained. “But it’s not just about savings—it’s about accelerating timelines with pre-vetted vendors, reducing variances and improving consistency through standardized procurement practices. In healthcare, speed to market directly impacts revenue, and most importantly, access to care, so having timely project execution without compromising on quality makes all the difference.”
Leveraging GPOs From Concept to Completion
As previously noted, timing is everything. According to Dodson, engaging a GPO early in the process—ideally during the planning or design phase—can yield significantly greater returns.
“Too often, we get a call when the drywall is already going up,” she said. “But if we’re brought in early, we help ensure standardization in design and products, identify more efficient equipment choices and support budgeting decisions with real-time market data.”
If brought in from day one, GPOs can:
- Offer Objective Vendor Recommendations: GPOs serve as an impartial party during vendor selection, with no stake in upselling specific brands or services.
- Inform Budgeting Through Data: Access to detailed market pricing and trend data allows ASC facilities to make better-informed decisions about where to invest or economize.
- Consider Long-Term Value: GPOs encourage a focus on total cost of ownership—including energy use, serviceability and maintenance—rather than purely upfront costs.
A Mindset Shift for Outpatient Leaders
The opportunity for ASCs is clear: what if your GPO could be more than a savings engine—and instead, a trusted advisor throughout the entire facility development lifecycle?
“Facilities teams are often under immense pressure to deliver on tight budgets and even tighter timelines,” Dodson said. “A GPO is an extension of their team, offering support, strategy and peace of mind.”
As ASCs continue to grow and evolve, leaders should look beyond traditional roles and explore how their existing partnerships—like those with GPOs—can be leveraged in new, strategic ways. Whether constructing a new surgery center or remodeling an existing space, early and consistent engagement with a GPO can unlock smarter decisions, faster timelines and better outcomes.
The post Contracts from A-Z: A Strategic Partner You Haven’t Considered When Building, Expanding or Remodeling ASCs appeared first on Becker’s ASC.
