Industry Definitions
IDN - An Integrated Delivery Network (IDN) is a network of facilities and providers working together to offer a continuum of care to a specific market or geographic area. Developed in the early 1980s, IDNs emerged to address common concerns like capitation, excess capacity, decreased margins, and complaints from patients regarding access. IDNs include many types of associations across the continuum of care and one network may include a short- and long-term hospital, HMO, PHO, PPO, Home Health agency, and hospice services, for example. Multi-hospital systems and mergers may be considered limited IDNs in that different entities join forces to provide care. Some members of a network provide identical or complementary services to patients. Such associations in which a similar level of care is provided by members of a network is sometimes called horizontal integration or, as opposed to different levels of care, or vertical integration, generally seen in the more traditional IDN model.
GPO - A group purchasing organization (GPO) is an entity that leverages the purchasing power of a group of businesses such as hospitals to obtain discounts from vendors based on the collective buying power of the GPO members. GPOs come in various sizes and derive their revenue through a variety of mechanisms. One of the most common methods is through administrative fees that are actually paid by the vendors. In some cases, the GPO is funded by fees paid by the buying members. These fees can be set as a percentage of the purchase or set as an annual flat rate. Rules set by the GPO can vary in the level of restriction. For example, some GPOs set mandatory participation levels for their members, while others are completely voluntary. Also, within a group of buyers it is sometimes required for all members of that group to belong to the same GPO. Members may be allowed to select items purchased through the GPO or may be bound by contract that allows less “cafeteria-style” choices.
Media & Downloads
Five Tips for Success - IDN Summit
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NCI - "Five Tips for Success" - Download
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