The Delta Purchasing Alliance is excited to announce a three-year contract renewal with McKesson for medical supplies and equipment which was effective in July 2021. McKesson is the first supplier partner of the DPA, with our relationship extending back to the DPA’s inception in 2016.
So what’s new in this renewal? Most notably, distributor mark-up on medical supplies and equipment is being reduced for ALL DPA members.
Under the original DPA/McKesson agreement which was effective January 1, 2016, those health centers who joined the DPA prior to 2017 received reduced distributor mark-up on various GPO contract supplies and equipment. However, the amount of distributor mark-up varied depending on the category of supplies or equipment being purchased. On average those original DPA members were receiving a “blended” distributor mark-up of about 9.5% over GPO contract price. Health centers who joined the DPA in 2017 and later received a flat 11.5% distributor mark-up on GPO-contract supplies and equipment regardless of product category.
Effective July 15, 2020, ALL DPA members, regardless of when they joined the DPA, will receive a flat 9.0% distributor mark-up on GPO contract supplies and equipment purchased via McKesson. While savings will vary amongst DPA members, our analysis shows that each of your health centers stands to save at least a few thousand dollars per year as a result of the reduced distributor mark-up.
We’re grateful for our continued relationship with McKesson. They have been a great partner since the launch of the DPA. Please be assured that we will continue to work with McKesson and all of your health centers to find additional avenues for cost savings going forward.