GPOs were originally established to save hospitals money on the purchase of supplies and equipment. The study shows that GPOs fail to deliver on their primary justification for allowing them to receive kickbacks from suppliers, and that they do not in fact reduce costs. "It is painfully clear that while hospitals and providers are trying to improve care and reduce costs for patients, the supplier-funded GPO model is costing the health care system billions," said MDMA President and CEO Mark Leahey.  "This study proves that GPOs not only fail to bend the cost curve for health care down, they are preventing hospitals and patients from getting the best products at the best prices.”

The study, "Do Group Purchasing Organizations Achieve the Best Prices for Member Hospitals? An Empirical Analysis of Aftermarket Transactions," found that repealing the safe harbor statutes Congress passed in 1986 would reduce private U.S. healthcare expenses by up to $25 billion each year.  This would also reduce federal healthcare spending by approximately $11.5 billion annually. 

The study also found that between 2001 and 2010, hospitals saved an average of 10% when they bought medical devices in the aftermarket compared to via GPOs. The study follows a 2009 report that showed hospitals could save approximately $8 billion each year if the safe harbor provisions were removed for GPOs.