HPS

What HPS does

HPS is a member-owned group purchasing organization (GPO) founded in 1949 in Middleville, Michigan, that aggregates the collective purchasing volume of 4,900+ member organizations across 36 states to negotiate pricing on nearly 200 contracts through 170+ vendor-partners. Its primary member classes of trade are hospitals and medical facilities, senior living (skilled nursing, assisted living, long-term, and independent living), public and private K-12 schools and higher education, and a longer-tail of community organizations (camps, senior feeding programs, county governments, religious organizations, jails). Members gain access to contracts covering food, medical/surgical, office, housekeeping, maintenance, pharmacy, staffing, and therapy services, plus an in-house interior design program and an FFE program reaching 800+ manufacturers.

The core technology stack is purpose-built or white-labeled for the membership: PO Advantage, a procure-to-pay platform developed exclusively for HPS by MedProcure, integrates GFS, McKesson, Staples, Lowe's, and Amazon into a single requisition-to-invoice workflow; the Contract Analysis Tool (CAT) ingests nightly GFS invoice feeds to deliver real-time dietary purchase history and budget modeling; the Menu Planner produces USDA-compliant recipes, allergen tracking, and auto-generated GFS shopping lists; and a member-only portal provides pricing, contract documents, FFE quote requests, and Value-Added Services. None of these tools rely on disclosed AI/ML components; their value derives from data integration depth and HPS-exclusive workflows rather than learned models.

HPS makes money primarily through group purchasing administration fees tied to member purchase volume (membership itself is free), supplemented by the PO Advantage subscription (small monthly per-location fee with a setup charge), Interior Design service fees in IL/IN/MI/OH, and the Allowance Program in which manufacturer savings flow through GFS invoices. Go-to-market is community-led and event-driven: 11–12 volunteer Member advisory committees govern contract decisions, dedicated Primary Representatives and Region Managers run field-based expansion and retention, and HPS maintains active memberships in 51–62 state and national associations and sponsors or attends 87–96 events per fiscal year. The member-owned, non-profit ownership structure — governed by a Board of Managers drawn from member institutions — distinguishes HPS from PE-backed or investor-owned GPOs and aligns it toward member value rather than profit maximization.

Name

HPS

Legal name

HPS

Website

https://hpsgpo.com

Company type

Private

Founded year

1949

Operating status

Operating

Headcount range

11–50 employees

Short description

HPS is a member-owned group purchasing organization founded in 1949, serving 4,900+ non-profit hospitals, senior living facilities, schools, and community organizations across 36 states through ~200 negotiated contracts with 170+ vendor-partners and exclusive procurement technology.

Ownership category

akta.pro rank

Headquarters

HQ city

Middleville

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Group Purchasing Administration / Membership Fees: HPS is a member-owned non-profit organization. Revenue is generated through group purchasing fees derived from the collective purchasing volume of over 4,900 member organizations. Members access nearly 200 contracts through more than 170 vendor-partners. The organization does not charge membership fees per se; it operates on the purchasing volume generated through its contracts.
2. Vendor Rebate Programs: Through special rebate programs with many vendor partners, member savings can grow well beyond contracted pricing. Rebate payments are made directly to members. HPS conducts quarterly financial audits to verify vendors are charging correct prices per contracted rates.
3. PO Advantage Platform Fee: PO Advantage, developed exclusively for HPS by MedProcure, charges a small monthly fee depending on the number of locations used. HPS members receive the lowest rate. There is also a small setup charge.
4. Interior Design Services: HPS Interior Design Center provides space planning, finish selection, furniture budgeting, artwork, window treatments, implementation, procurement, and coordination services for members in Illinois, Indiana, Michigan, and Ohio. A design fee applies for these services.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels12 records

Core offering

HPS is a member-owned group purchasing organization that negotiates volume pricing on nearly 200 contracts with 170+ vendor-partners on behalf of more than 4,900 member organizations across 36 states. Members include hospitals, senior living facilities, schools, camps, and community organizations, accessing free core GPO membership plus value-added tools including the PO Advantage procure-to-pay platform, Contract Analysis Tool, Menu Planner, FFE program with 800+ manufacturers, and Interior Design Center services.

Product overview

HPS is a member-owned group purchasing organization that operates as a unified platform-plus-modules architecture, offering procurement management tools and value-added services to healthcare, senior living, education, and associate facilities. The core product suite includes PO Advantage (comprehensive procure-to-pay platform), Contract Analysis Tool (dietary budget analytics), Menu Planner (meal planning and compliance), Furniture Finishes & Equipment Program (facility purchasing with 800+ manufacturers), and Interior Design Center (design services in select states). These tools are supplemented by vendor contracting services through 11 advisory committees, spending evaluation services, an allowance program with manufacturer discounts, and commodity planning tools for regional purchasing. HPS does not charge for core membership but applies monthly fees for PO Advantage and design fees for Interior Design services.

Differentiator

Problem solved

Functional benefit

Products and services

• PO Advantage Comprehensive procure-to-pay platform developed exclusively for HPS by MedProcure. Integrates all vendors (GFS, McKesson, Staples, Lowe's, Amazon) into a single interface for requisitions, approvals, receipts, inventory updates, invoices, barcode scanning, mobile app access, and accounting system integration. Available to HPS members at a small monthly fee based on number of locations.
• Contract Analysis Tool (CAT) Free exclusive real-time purchase history tool for HPS members. Displays daily invoice data from Gordon Food Service, tracks spending by location, category, and manufacturer, and projects how price changes affect bottom lines. Supports cost control, budget development, and suggested purchasing changes for dietary departments.
• Menu Planner Free tool for HPS members to create recipes and meals, add meals to calendars, publish menus for students and parents, calculate nutritional values against USDA standards, track allergens, maintain production records, complete USDA Compliance Certification forms, generate government reporting forms, and auto-generate Gordon Food Service shopping lists from member-specific purchases.
• Furniture, Finishes & Equipment (FFE) Program Free HPS member program providing access to relationships with more than 800 manufacturers for indoor/outdoor furniture, flooring, furnishings, accessories, window treatments, and food service equipment. Includes volume discount negotiation, installation coordination, formal bid responses, and technical specs and drawings for facility furnishing and equipment needs.
• Interior Design Center Professional interior design services for HPS members in Illinois, Indiana, Michigan, and Ohio. Provides space planning, finish selection, furniture budgeting, artwork, window treatments, implementation, procurement coordination, and collaboration with architects and contractors. A design fee applies.
• Evaluation of Spending Free comparative analysis service where HPS members supply approximately one month's worth of invoices in areas such as dietary, office, maintenance & housekeeping, medical & surgical, and pharmacy. HPS compares prices paid against contract pricing available through the program to demonstrate savings.
• Allowance Program Manufacturer discount program offering HPS members additional product savings beyond contracted pricing on hundreds of food and supply products, with savings appearing directly on Gordon Food Service invoices.
• GLC Commodity Planner Commodity planning tool for Michigan-based HPS members to assist with food purchasing and procurement planning.
• SWEPC Commodity Planner Commodity planning tool for Ohio-based HPS members to assist with food purchasing and procurement planning.

Quantifiable outcome

• 15-20% estimated cost reduction for founding hospitals in 1949
• +2 more outcomes

Named customers17 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Eleven partnerships are on record, tiered minor and core.

• ROi (Responser Organizations Integrated)minorStrategic or Co-development Partner · 1 January 2018After MedAssets was acquired by Vizient in 2018, HPS switched to ROi as its national partner. By 2019, when ROi was purchased by another group, HPS made the decision to return to its roots as a standalone GPO.
• MedAssetsminorStrategic or Co-development Partner · 1 January 2003MedAssets became HPS's new national partner in 2003 for medical/surgical contracts. When MedAssets was acquired by Vizient in 2018, HPS switched to ROi.
• Great Lakes Food Service Equipment SpecialistscoreStrategic or Co-development Partner · 1 January 1999Since 1999, HPS has partnered with Great Lakes Food Service Equipment Specialists to offer a complete food service equipment program, including commercial kitchen design services. Great Lakes brings expertise in the design, engineering, and installation of kitchens, coupled with purchasing power in food service equipment, serving HPS members.
• HPPI (Hospital Purchasing Performance Initiative)minorStrategic or Co-development Partner · 1 January 1997In 1997, HPS partnered with HPPI to take advantage of its national medical/surgical contracts. This partnership was later superseded when MedAssets became the national partner in 2003.
• MedProcurecoreTechnology or IntegrationMedProcure developed the PO Advantage tool exclusively for HPS Members. MedProcure handles setup (entering member data, vendor information, GL codes), provides training, offers live customer support, and continues to update the tool as requested. MedProcure also arranges demos and manages the customer onboarding process for PO Advantage.
• BidNetminorChannel Partner/ Reseller/ DistributorHPS advertises Request for Proposals and contract solicitations on the BidNet website as well as on the HPS website. BidNet extends HPS's RFP reach to a broader vendor audience.
• Gordon Food ServicecoreChannel Partner/ Reseller/ DistributorGordon Food Service is HPS's primary dietary distributor. Most dietary-related contracts are through GFS and do not require a Letter of Participation. The HPS Member prices listed on the GFS website reflect built-in allowance savings. CAT is populated nightly with GFS invoice data. GFS serves as the primary data feed for HPS's dietary analytics tools.
• Healthcare Supply Chain Association (HSCA)coreOthersHPS is a member of the Healthcare Supply Chain Association (HSCA). This organization holds HPS to industry standards and helps create new ethical business standards for all GPOs to follow.
• Healthcare Group Purchasing Industry Initiative (HGPII)coreOthersHPS is a member of the Healthcare Group Purchasing Industry Initiative (HGPII), an organization comprised of group purchasing agencies that adopt and implement high standards of business ethics.
• Association for Healthcare Foodservice of MichiganminorOthersHPS is a founding member of the Association for Healthcare Foodservice of Michigan, participating actively in its committees and activities.
• Midwest Higher Education Compact (MHEC)minorStrategic or Co-development PartnerHPS College and University Food Purchasing Program is available through the MHEC (Midwest Higher Education Compact) purchasing program, extending HPS's reach into college and university purchasing.

Scale indicators14 records

Recent moves7 records

Expansion highlights5 records

Others

• Symplr: Symplr provides healthcare operations and governance, risk, and compliance software, including supplier and contract management. Adjacent to HPS in healthcare procurement technology, though focused on broader healthcare operations rather than pure GPO services.

Regional players

• HealthPRO Procurement Services: HealthPRO is a Canadian healthcare GPO serving hospitals and health systems. Comparable to HPS in GPO function and healthcare focus, but operating in a different geographic market (Canada).
• Yankee Alliance: Yankee Alliance is a healthcare GPO primarily serving New England hospitals and healthcare organizations. Comparable to HPS in GPO function and healthcare focus, but with a more limited Northeast geographic footprint.

Broad incumbents

• Vizient: Vizient is the largest US healthcare performance improvement company and GPO, formed through the combination of VHA, UHC, and MedAssets. It is directly comparable to HPS as a healthcare-focused GPO serving hospitals and health systems, but operates at significantly larger national scale.
• Premier Inc: Premier is a publicly traded healthcare improvement company and GPO serving approximately 4,400 US hospitals and 250,000+ other providers. Directly comparable to HPS in core GPO function for healthcare members, with broader national scale and a more diversified services portfolio.

Direct peers

• Capstone Health Alliance: Capstone Health Alliance is a regional GPO serving hospitals, health systems, and other healthcare organizations. Comparable to HPS in member focus, though operating primarily in the Southeast and with a different regional concentration.
• ROi (Responsive Operations): ROi is a healthcare supply chain solutions company that was HPS's national M&S partner from 2018-2019. Provides similar GPO and supply chain services to healthcare providers, making it a direct comparable in medical/surgical contracting.
• HealthTrust: HealthTrust is a GPO owned by HCA Healthcare, serving hospitals, health systems, and non-acute care facilities. Directly comparable to HPS in GPO function and member segments, though backed by a large hospital system.
• Provista (part of Vizient): Provista was a GPO serving non-acute healthcare, education, and public sector organizations, comparable to HPS in vertical mix. Now part of Vizient, it represents a direct competitor in non-acute and community-based segments.
• Conductiv: Conductiv is a third-party GPO focused on healthcare and non-acute facilities, providing contracted pricing on medical/surgical and supply chain services. Directly comparable to HPS in target member base and GPO function.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/HPSgpo
• LinkedInlinkedin.com/company/hpsgpo
• Xx.com/HPSgpo

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about HPS