So these hospitals need supplies there's Various companies who have these Supplies these hospitals said why don't We get together and buy directly from The supplier together they brought in a Broker and the broker was called a GPO Group purchasing organization the GPO Served as their middle man they were Helping the hospitals get a lower rate Over time the gpos controlling the Supply of nearly every item these gpos Sort of flipped the game started Dictating price and Supply so the gpos Would tell the hospitals what to do Literally buying the hospital Administrators special hotels Vacations So they would accept the price that they Were giving there are only three major Gpos the three major insurance companies Bought the three gpos the high price of All of these supplies is what the Insurance companies use to make you say I'm willing to pay higher for the Premium God forbid I go to a hospital And how do you get price High more Shortages you get more increase in price Basic macroeconomics
