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Short answer
Premier’s group purchasing organization (GPO) negotiates supplier contracts for its members and is paid mainly by the suppliers: according to Premier’s fiscal 2025 Form 10-K, the GPO “primarily generates revenue through administrative fees received from contracted suppliers”, based on the net negotiated price and purchase volume of what members buy. Part of that money flows back to members as revenue share. Premier was acquired by Patient Square Capital on November 25, 2025 and its stock was delisted from Nasdaq, so the 10-K for the year ended June 30, 2025 is its last annual report as a public company. This page is general information, not legal or purchasing advice.
Definition and scope: what “Premier GPO” refers to
Searchers use several names for the same thing: “Premier GPO”, “Premier Alliance”, “Premier Healthcare Alliance”, “Premier group purchasing organization” and “Premier Inc GPO”. In the filing, Premier, Inc. describes itself as a Delaware corporation incorporated on May 14, 2013 that runs two business segments, Supply Chain Services and Performance Services. The GPO sits inside Supply Chain Services; Performance Services is the technology and services platform. The names “Premier Alliance” and “Premier Healthcare Alliance” are search variants for this same GPO; this page uses “Premier GPO” for the purchasing program described in the filing.
A GPO is not a seller of goods. Under the federal safe harbor definition, it is “an entity authorized to act as a purchasing agent for a group of individuals or entities” that furnish services payable by Medicare, Medicaid or other federal health programs (42 CFR 1001.952(j), checked 2026-10-30). For a general comparison of the large US GPOs, see top healthcare GPOs compared.
How does Premier GPO make money?
Three payment relationships matter, all described in Premier’s fiscal 2025 Form 10-K (checked 2026-10-30):
| Step | Who pays whom | What the filing says |
|---|---|---|
| 1. Contract | Premier negotiates with suppliers on behalf of members | Premier uses members’ aggregate purchasing power to negotiate pricing discounts and contract terms with suppliers. |
| 2. Administrative fee | Supplier pays Premier | Contracted suppliers pay administrative fees based on the net negotiated price and purchase volume of goods and services sold to members under those contracts. |
| 3. Revenue share | Premier pays members | Under GPO participation agreements, members receive revenue share based on purchasing by the member’s owned, leased, managed and affiliated facilities through Premier GPO supplier contracts. |
The same filing reports that competitive pressure has led members and prospects to request higher revenue share, and that Premier expects to keep receiving such requests. It also reports that GPO participation agreements generally cannot be terminated without penalty except for cause or on a change of control of the member.
The safe harbor and annual fee disclosure
Premier states that it operates its group purchasing services and revenue share arrangements in reliance on the GPO safe harbor at 42 CFR 1001.952(j) and the discount safe harbor at 42 CFR 1001.952(h). Under 1001.952(j), vendor payments to a GPO are not treated as remuneration under the Anti-Kickback Statute when two conditions are met (eCFR, checked 2026-10-30):
- The GPO has a written agreement with each entity that receives the goods or services, stating that vendors will pay the GPO 3 percent or less of the purchase price, or, if the fee is not fixed at 3 percent or less, specifying the amount or maximum amount.
- If the entity receiving the goods is a provider of services, the GPO discloses in writing at least annually the amount it received from each vendor with respect to that provider’s purchases, and discloses the same to the Secretary of HHS on request.
Premier’s filing adds that safe harbors are narrow and that falling outside one does not by itself make an arrangement unlawful. For background, see the GPO safe harbor and the Anti-Kickback Statute in healthcare.
Ownership since 2025 and what the filings still tell you
On November 25, 2025, Patient Square Capital completed its acquisition of Premier, valued at $2.6 billion, with stockholders receiving $28.25 in cash per share; Premier common stock ceased trading and was to be delisted from Nasdaq as of that date (Premier press release filed as Exhibit 99.1 to a Form 8-K, checked 2026-10-30). Two practical consequences follow for readers:
- The fiscal 2025 10-K describes Premier as a “publicly held, for-profit corporation”; read it as a description of the company at June 30, 2025.
- Figures in it are dated. At June 30, 2025 the filing reports more than 4,250 acute care providers and about 365,000 active members in its continuum of care program, and total GPO purchasing volume by participating members of more than $87 billion in calendar year 2024.
Where it matters for lab and clinic supply decisions
Premier GPO contracts cover non-labor spending for hospitals and other sites. Whether a laboratory or clinic can reach a given contract depends on its parent organization’s membership, not on Premier’s public pages. The disclosure rule above yields a short list of questions to put to a member organization’s supply chain office, each tied to the regulation rather than to any savings claim:
| Question | Basis |
|---|---|
| Does our written GPO agreement state the vendor fee as 3 percent or less, or give the amount or maximum? | 42 CFR 1001.952(j)(1) |
| Have we received the GPO’s annual written disclosure of what each vendor paid on our purchases? | 42 CFR 1001.952(j)(2), for provider members |
| Does our participation agreement carry a revenue share, and what purchasing does it count (owned, leased, managed or affiliated facilities)? | Premier fiscal 2025 Form 10-K, GPO programs |
| What are the termination terms of the participation agreement? | Premier fiscal 2025 Form 10-K: generally not terminable without penalty except for cause or change of control |
Hospital sourcing teams also weigh clinical preferences alongside contract terms; see value analysis committees and physician preference items. Research institutions that buy through cooperatives face separate rules, covered in GPOs for research institutions.
Common misunderstandings
- “Premier sells the supplies.” The filing describes administrative fees from suppliers on sales under negotiated contracts; the GPO is a contracting intermediary, not the seller of the goods.
- “Members pay Premier for contract access.” The filing says the GPO primarily earns revenue from suppliers.
- “Premier is a listed company.” Not since November 25, 2025.
- “Premier is the largest GPO.” A 2026 JAMA Health Forum study of hospital affiliations found Premier as the primary pharmaceutical GPO for 1,128 hospitals (23.7%) in 2024, versus 1,109 (22.1%) in 2014, while Vizient rose from 23.0% to 43.4% (Tseng, Bond and Dean, 2026;7(9):e263151). That measures one affiliation type, not total purchasing.
FAQ
How does Premier GPO make money?
Mainly through administrative fees paid by contracted suppliers, calculated on net negotiated price and purchase volume under the contracts Premier negotiated, per its fiscal 2025 Form 10-K. It then pays members a revenue share based on their purchasing through those contracts.
What is the difference between Premier Inc. and Premier Healthcare Alliance?
Premier, Inc. is the corporation described in the 10-K, and its GPO programs are run within the Supply Chain Services segment. “Premier Alliance” and “Premier Healthcare Alliance” are names searchers use for the same purchasing program; the 10-K does not describe them as separate programs.
Is Premier still publicly traded?
No. The Patient Square Capital acquisition closed on November 25, 2025 and Premier common stock ceased trading and was to be delisted from Nasdaq as of that date.
Is a GPO fee legal?
Vendor fees paid to a GPO fall within the Anti-Kickback Statute safe harbor when the written-agreement and annual-disclosure conditions of 42 CFR 1001.952(j) are met. Whether a specific arrangement qualifies is a legal question for counsel.
Sources
- Premier, Inc., Form 10-K for the fiscal year ended June 30, 2025, SEC EDGAR: https://www.sec.gov/Archives/edgar/data/1577916/000157791625000011/pinc-20250630.htm, checked 2026-10-30.
- Premier, Inc., “Patient Square Capital Completes Acquisition of Premier, Inc.”, Exhibit 99.1 to Form 8-K, November 25, 2025: https://www.sec.gov/Archives/edgar/data/1577916/000119312525294735/d82039dex991.htm, checked 2026-10-30.
- 42 CFR 1001.952(j), Electronic Code of Federal Regulations: https://www.ecfr.gov/current/title-42/chapter-V/subchapter-B/part-1001/subpart-C/section-1001.952, checked 2026-10-30 (text also confirmed at https://www.law.cornell.edu/cfr/text/42/1001.952).
- Tseng P, Bond A, Dean E. Consolidation of Hospital Affiliations With Group Purchasing Organizations. JAMA Health Forum. 2026;7(9):e263151: https://jamanetwork.com/journals/jama-health-forum/fullarticle/2853531, checked 2026-10-30.
