The prices paid for routine medical supply items by six hospital group-purchasing systems and a control group of 24 nonaffiliated hospitals were compared to determine the effects of group purchasing. Each of the six group-purchasing systems obtained lower prices for supply items used in the study, ranging from 12 to 26 percent average savings. The enforcement of written contracts among the plan's members and the percentage of plan member participation appeared to explain effectiveness. Size of the plan and volume of purchases did not influence the percentage of saving realized among the groups.
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