How Does MedSource Work?
MedSource seeks to reduce costs while guaranteeing quality across the entire pharmaceutical supply chain through our members. We work with manufacturers and distributors to give our members better access to quality-assured medical supplies at negotiated costs. Members can use the MedSource platform to place their orders directly with suppliers. MedSource does not purchase or stock medicines and supplies on behalf of its members, who can continue to operate independently and conduct business with non-MedSource suppliers. MedSource also helps members build sustainable businesses and gives them the tools they need to grow and prosper. Services include:
- Supporting training on business skills, pharmacy practices, and inventory management
- Working with financial partners to facilitate access to credit for members
- Providing information technology solutions for improved integration and tracking of business transactions
How do MedSource members benefit?
Members benefit from purchasing medicines at lower costs and of assured quality. They also benefit from access to credit to grow their businesses, capacity building services, and technology solutions. For example, members will be offered access to software to manage their inventory and prevent stock- outs. The ultimate beneficiaries of MedSource are the patients who, by seeking services through participating health providers, are guaranteed quality services and products and an increased likelihood of a better health outcome.
How Does a Group Purchasing Organization Work?
A group purchasing organization (GPO) allows independent pharmacies, pharmacy chains, hospitals, and other health care providers to buy goods and services at better prices than are usually available to them. It does this by leveraging the combined buying power of its member pharmacies and negotiating discounts with manufacturers, distributors, and other vendors. Because of the economies of scale, every member reaps benefits similar to the largest volume purchaser.
As a GPO, MedSource’s purpose is to improve accessibility and availability of affordable, quality medication and laboratory and health supplies for health care providers and ultimately the population at large.