Market Dominance and Anticompetitive Conduct of GPOs

The group purchasing organization (GPO) industry is a classic example of highly concentrated oligopolistic structure, which is characteristic of an industry where the top 3–4 companies control more than 50 percent of the total market. In general, oligopolistic industry structure is symptomatic of mature industries where demand is relatively stable, the rate of innovation is minimal to moderate, and economies of scale—and therefore consolidation— offer the most promising source of increasing revenue and profits.