Thank you for Subscribing to Med Tech Business Review Weekly Brief
Medtech Business Review | Thursday, October 01, 2026
A medical device company can secure a group purchasing organization contract and still receive few orders from hospitals. The agreement removes a procurement barrier by making the device available to member facilities under negotiated terms. It does not, however, give clinicians a reason to use the product or persuade purchasing teams to replace an established option.
This is where manufacturers can misread the value of GPO participation. Securing a listing may feel like the end of a long commercial process, but it is only one stage. Each hospital must still decide whether to evaluate the device, approve it for use and add it to its purchasing system.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
That process can be difficult when the device enters a category filled with familiar alternatives. Hospitals may have long-standing supplier relationships and procedures designed around the products they already use. A change could require new staff routines and clinical training. It may also affect storage arrangements and inventory planning. The GPO agreement does not eliminate any of this work.
Commercial activity, therefore, has to continue within each hospital account. The manufacturer must find out which departments influence the purchase and how the facility reviews a new device. Procurement staff may confirm that the product is covered by a GPO agreement, yet a clinical committee could still ask for supporting evidence before approving its use.
Budget timing can delay adoption as well. A department may have already committed its available spending even though the device is covered by the current GPO terms. Some hospitals consider product changes only during scheduled review periods. If orders do not follow the agreement immediately, the manufacturer could mistake a timing issue for a lack of interest.
Sales representatives also need to understand exactly what the contract changes. In one case, it may simplify pricing. Elsewhere, it could reduce part of the administrative review or make the device available to more facilities. Referring to the GPO relationship as proof that a hospital is ready to buy can create unrealistic expectations within the sales team.
The member list should not automatically become the sales target list. Trying to approach every eligible facility can take considerable time without showing where adoption is realistic. Manufacturers can begin with hospitals that have already expressed interest or regularly use comparable devices. Facilities willing to review an alternative may also deserve closer attention.
Contracting and sales teams need to remain connected during this work. Contracting staff understand the agreement requirements, while sales representatives hear the concerns raised within individual hospitals. Each side should know what the company has promised and which purchasing conditions apply. Different explanations from the same supplier can slow the review and make the account less confident about proceeding.
Contract status alone offers an incomplete view of progress. A hospital evaluation shows initial interest. Approval to add the product marks another step, while first orders and repeat purchases reveal whether the device is moving into regular use. Looking at these stages separately gives the manufacturer a clearer picture of what the agreement is producing.
GPO participation can make it easier for hospitals to purchase a medical device, but adoption is still decided facility by facility. Manufacturers need to treat the agreement as an entry point and continue the account-level work required to turn purchasing access into regular use.
More in News