Applicable Group Purchasing Organization Law and Legal Definition

The term applicable group purchasing organization means a group purchasing organization operating in the United States, or in a territory, possession, or commonwealth of the United States that helps health care providers such as hospitals, nursing homes and home health agencies by purchasing, arranging, and negotiating the purchase of a covered drug, device, biological, or medical supply [42 USCS § 1320a-7h (e)(1)]. They also help to realize savings and efficiencies by aggregating purchasing volume and using that leverage to negotiate discounts with manufacturers, distributors and other vendors.