Which arrangement could be described as essentially the same as a GPO but designed to serve smaller pharmacies?

• A. Distributor Sourcing
• B. Manufacturer Sourcing
• C. Pharmacy Buying Groups
• D. Wholesaler Sourcing

Answer: (C)

Pooling purchasing power to obtain better terms is the idea behind a group purchasing arrangement. A GPO helps organizations negotiate discounts by combining their buying volume. For smaller pharmacies, a Pharmacy Buying Group serves the same purpose on a smaller scale: independent community pharmacies join together to negotiate with distributors and suppliers, aiming for lower prices, better terms, and access to rebates or shared services while remaining independently owned.

In practice, members contribute their volume, and the group negotiates contracts, sets a standard product catalog, and often provides vendor-managed inventory or other group benefits. This makes purchasing terms more favorable than each small pharmacy could secure alone, without giving up their independence.

The other options describe individual sourcing paths rather than a collective purchasing arrangement: sourcing from distributors directly as a group, direct manufacturer sourcing, or buying through wholesalers without the group structure. These do not capture the collective bargaining power that characterizes a GPO-like setup for smaller operations.