A group purchasing organization (GPO) is a collective that helps businesses, especially in sectors like healthcare, to buy goods and services at lower prices. By pooling the purchasing power of its members, a GPO negotiates discounts with suppliers, allowing smaller organizations to benefit from the same pricing advantages as larger companies. Members of a GPO typically pay a fee or a percentage of their savings to access these benefits. This arrangement can lead to significant cost savings on essential items, such as medical supplies or office equipment, making it easier for organizations to manage their budgets effectively.