Practice Management
September 2022
by Ellen Stodola
Editorial Co-Director
EyeProGPO is a newly established, ophthalmology-focused group purchasing organization (GPO) created to make the acquisition of ophthalmic supplies more accessible for members of the group. Led and managed by ASC executives, physicians, and clinicians, EyeProGPO has partnered with the Outpatient Ophthalmic Surgery Society (OOSS) to provide its services as a free member benefit. Jerome Levy, MD, and Robert Nelson, PA-C, discussed the new venture with EyeWorld and the value that such a GPO could have in ophthalmology.
“The benefit of belonging to a GPO without being in a consolidated practice is that you get to experience the better pricing that happens with a larger group.”
Cathleen McCabe, MD
Dr. Levy and his executive team have previous experience in this field, having a similar organization with a clinically integrated network (CIN) of nine ophthalmic surgery centers. The idea, he said, was to form a group purchasing organization at a time when managing costs was a critical component of negotiating value-based contracts with the payer community. This initial arrangement went on for several years and was financed by surgery centers paying dues. However, this model began to reach a point where some of the centers wanted to explore a better process that would bring even more benefit. This was the catalyst for creating EyeProGPO.
EyeProGPO’s approach, Dr. Levy said, is to collect vendor administration fees. “We decided to go in that direction and eliminate dues and membership fees. We set up a corporate model where the vendors we’d had close business relationships with for years would be paying an administration fee and members wouldn’t be paying,” he explained.
EyeProGPO started operations at the end of 2021. Currently, it has about 20 vendors and 100 ASCs members, representing 400 clinics and 900 physicians in 30 states. Significant expansion is expected within the next year.
Dr. Levy said this GPO includes companies that provide a variety of technologies and supplies, including microscopes, phaco platforms, IOLs, instruments, glaucoma devices, drapes, drugs, cornea tissue, and more. “We have a large and dedicated group of vendors that are joining us,” he said. “We know most of them from partnerships created under the CIN. The introduction of our new structure has gone well during this transition.” The GPO offers the ability for those participating to get group discounts on supplies, discounts not normally available to facilities negotiating on their own.
Speaking about the process of signing up a potential member, Dr. Levy said, “EyeProGPO completes a market basket analysis for potential members who would like one, where their current pricing is compared to EyeProGPO’s contracted pricing. Once savings are presented, potential members can evaluate their savings. If they are getting a less expensive price, they can keep their local contract with the vendor and purchase the remainder from us.
“There is no risk for those signing up,” Dr. Levy continued. “Membership with EyeProGPO is free for OOSS members. If a facility is not currently an OOSS member, EyeProGPO will pay the first year’s dues, thus enabling the ASC member to benefit from both organizations.”
Mr. Nelson added that many who join could see thousands of dollars in savings, based on the GPO’s analysis. Dr. Levy estimated that in his high-volume facility, being part of this GPO helps him save around 10–15% on his ASC supply costs.
Mr. Nelson said that ASCs can also benefit from the EyeProGPO’s Focus Technology platform, which includes a member portal, market basket studies, a procurement application, data analytics, and collaboration/educational opportunities. “This initiative gives the ASC manager or administrator insight into their data that will help them manage the facility, monitor their expenses, and optimize their supply spend,” he said. It will allow them to see how much they’re spending across all supply categories.
Dr. Levy noted that there are several GPOs, but none of them are ophthalmic centric. “We looked at what has been done with other GPOs and used some of the ideas for what we’re doing,” he said. “EyeProGPO’s leadership is composed of clinicians, ASC administrators, and industry innovators in the field of ophthalmology who have an in-depth understanding of the operational, clinical, and supply aspects of ophthalmic ASCs.”
Cathleen McCabe, MD, immediate past president of OOSS, said that having group purchasing options is critical for leveling the playing field, even among different practices. She said that in her private equity group, they found when paying for different products, there was a broad range among different practices. “Sometimes we thought we weren’t getting the best price, and we were,” she said. “There’s a lack of consistency. The benefit of belonging to a GPO without being in a consolidated practice is that you get to experience the better pricing that happens with a larger group,” she said.
She added that one benefit of EyeProGPO specifically is that members can still use pricing outside of that organized by the GPO. “They have allowed for flexibility to have people use what’s best for their practice and take advantage of what EyeProGPO can offer without having to be exclusive,” she said.
About the sources
Jerome Levy, MD
CEO and Chairman
EyeProGPO
Bronx, New York
Cathleen McCabe, MD
Medical Director
The Eye Associates
Bradenton, Florida
Robert Nelson, PA-C
Vice President of Business Development
EyeProGPO
Long Island, New York
Relevant disclosures
Levy: EyeProGPO
McCabe: None
Nelson: EyeProGPO
Contact
Levy: jhlmd@eyeprogpo.com
McCabe: cmccabe13@hotmail.com
Nelson: bnelson@eyeprogpo.com
