Which statement best describes a Group Purchasing Organization (GPO)?

• A. An entity that certifies wholesalers for regulatory compliance
• B. A body that negotiates with manufacturers directly for product development
• C. An organization that negotiates with wholesalers on behalf of member pharmacies to obtain favorable rates
• D. A program that educates pharmacists on purchasing ethics

Answer: (C)

Group Purchasing Organizations capitalize on collective buying power by negotiating with wholesalers on behalf of member pharmacies to obtain favorable pricing and terms. They contract with wholesalers and pass the savings to members, often layering in membership arrangements or pass-through discounts to enhance value. This role focuses on procurement and cost reductions through supplier agreements, rather than certifying wholesalers, shaping product development with manufacturers, or delivering ethics education. In practice, joining a GPO helps community and independent pharmacies access better prices and reliable supply through aggregated purchasing.