Written and maintained by CASRAI Editorial Board
Last updated
Short answer: medical supplies are bought by the sites of care that use them (physician offices, hospitals, laboratories, EMS agencies, nursing homes and extended-care facilities, federal facilities) and by resellers who buy to sell on. According to the Health Industry Distributors Association (HIDA), its distributors serve more than 560,000 such sites in the United States. Most buy frequently used supplies through distribution; some buy through a group purchasing organization (GPO) acting as their purchasing agent.
General information, not legal, clinical or purchasing advice. This page maps who the buyers are and which CASRAI pages explain the documents each tends to ask a supplier for.
Definition and scope
A buyer is the entity that places the purchase order and pays the invoice. That is not always the person who uses the product: a nurse uses a dressing, while a supply chain team, a practice manager or a GPO contract usually decides where it is bought. A reseller or wholesale buyer purchases supplies to sell on rather than to use, which is a different buyer type with different paperwork. For how wholesalers, distributors and manufacturers differ, see medical supply wholesaler and medical supply distribution.
Who buys: segments by site of care
HIDA publishes the number of customer sites its member distributors serve, by type ("As of June 2025"). These are counts of sites of care, not purchase volume or spending, so a large count does not mean a large share of sales.
| Buyer segment | Sites served (HIDA, June 2025) | Related CASRAI page |
|---|---|---|
| Physician offices | 230,000 | Retail clinic supply checklist |
| Hospitals | 6,000 | Central supply department in a hospital |
| Laboratories | 267,000 | Wholesale medical supply procurement |
| EMS agencies | 18,000 | Medical supplies for EMS |
| Nursing homes and extended-care facilities | 44,000 | Nursing home supply checklist |
| Federal agencies and their healthcare facilities | Numerous (HIDA gives no count) | Selling medical supplies to the government |
HIDA’s 2024 white paper also lists long-term care, physician practices, home care and laboratories among the settings its members serve. Ambulatory surgery centers have their own list in the ambulatory surgery center supply checklist.
How they buy: distributor, GPO and federal channels
Through a distributor
HIDA describes distribution as "the essential link between global healthcare supply manufacturers and local care providers" and states that most customers prefer to buy frequently used medical supplies and devices through distribution, in order to ensure higher fill rates and shorter lead times. It also says distribution model decisions are driven by customer requirements (HIDA white paper, 2024).
Through a group purchasing organization
Under the federal anti-kickback safe harbor at 42 CFR 1001.952(j), a GPO is an entity authorized to act as a purchasing agent for a group of individuals or entities. One condition of that safe harbor is a written agreement between the GPO and each buyer receiving items or services. The agreement must either state that participating vendors pay the GPO a fee of 3 percent or less of the purchase price, or specify the amount, or the maximum amount, that each vendor pays (the regulation, not this page, governs). For how buying groups compare, see physician buying group vs hospital GPO and top healthcare GPOs compared.
Federal buyers
Federal agencies and their healthcare facilities are a distinct segment in HIDA’s customer list. Selling into that channel has its own rules, covered in how to sell medical supplies to the government.
Wholesale buyers and resellers
A wholesale buyer purchases to resell, so the paperwork questions shift from clinical use to resale: a resale or tax-exempt certificate, and where the stock comes from. See tax-exempt certificate for medical supplies, gray market medical supplies and how to find wholesale suppliers.
Medical supplies for clinics
Clinics sit mainly in the physician-office segment. A clinic’s range depends on the services it offers, so the segment checklists, not this page, list the items: urgent care clinic and retail clinic.
Where each buyer should look next
A cross-walk from the buyer’s situation to the CASRAI page that explains the relevant document or check.
| Buyer situation | Page to read |
|---|---|
| Buying through a GPO agreement | GPO comparison, and the written-agreement condition in 42 CFR 1001.952(j) |
| Checking a vendor before purchase | OIG exclusion list check for vendors |
| Buying to resell | Tax-exempt certificate |
| Unsure of the supply source | Gray market medical supplies |
| Hospital central supply | Central supply department |
Common misunderstandings
- More sites does not mean more spending. HIDA’s counts are sites served. Laboratories and physician offices outnumber hospitals by wide margins, but the counts say nothing about purchase value.
- The user is not always the buyer. Clinical staff use supplies; purchasing staff, practice managers or a GPO arrangement usually place the order.
- A GPO is defined as a purchasing agent. The regulation describes it as acting for a group of buyers, which is a different role from a distributor that supplies the goods.
FAQ
Who buys medical supplies in bulk?
Per HIDA’s customer-site list: physician offices, hospitals, laboratories, EMS agencies, nursing homes and extended-care facilities, and federal healthcare facilities, plus resellers who buy to sell on. HIDA reports no figure for how much each segment buys.
Who are wholesale buyers of medical supplies?
Wholesale buyers purchase to resell, which separates them from care sites that buy to use. See how to find wholesale suppliers.
Where do clinics buy medical supplies?
HIDA states that most customers prefer to buy frequently used supplies through distribution; some buy through a GPO acting as their purchasing agent.
Sources
Checked 2026-11-01.
- HIDA, “Healthcare Distribution By The Numbers” (figures as of June 2025): https://www.hida.org/distribution/resources/infographics/healthcare-distribution-by-the-numbers.aspx
- HIDA, manufacturer distribution strategy decisions white paper, 2024: https://hida.org/distribution/news/press-releases/2024/manufacturer-distribution-strategy-decisions-white-paper.aspx
- 42 CFR 1001.952(j), group purchasing organizations: https://www.law.cornell.edu/cfr/text/42/1001.952
