What Group Purchasing Options Are Available for a New Medical Practice to Reduce Startup Costs?
By USPPG Editorial Team | Last updated: October 2026
A new medical practice has four main group purchasing options: a vaccine GPO for privately purchased vaccines, the Vaccines for Children (VFC) program for eligible children, state Section 317 programs for some adults, and broader GPOs for medical supplies. Yet for most primary care practices and pharmacies, vaccines are the largest recurring purchase on that list. As a result, vaccine contract pricing is usually the first one to set up.
This guide explains how each option works and what to enroll in before you open. It also covers how the USPPG vaccine purchasing program fits into a new practice’s year-one plan.
Table of Contents
Key Takeaways:
- A vaccine GPO pools many practices’ volume so each one gets contract pricing it couldn’t negotiate alone.
- USPPG is free to join and has no minimum volume, so even a practice that hasn’t opened yet can enroll.
- In addition, savings can appear as lower invoice pricing, as rebates after purchase, or both.
- Members can also order right away once they register and complete each manufacturer’s paperwork.
- VFC and Section 317 programs cover specific patient groups, so they work alongside a GPO rather than replacing it.
- Plan flu pre-booking early, because manufacturers usually take reservations in late winter or early spring.
What Is a Group Purchasing Organization?
In short, a group purchasing organization (GPO) negotiates contract prices with manufacturers on behalf of its members. Because it represents the combined volume of many buyers, it can secure pricing that a single new practice usually can’t. For a fuller explanation of contracts, rebates and GPO fees, also see what a vaccine GPO is and how it works.
Why Group Purchasing Matters for New Practices
When you build a practice from scratch, every line in the budget matters. However, new owners tend to focus on the obvious costs, such as space, staff and technology, and treat smaller recurring costs as fixed. Vaccines often land in that second group simply because owners don’t know there’s an alternative.
The startup cost picture
For example, opening an independent practice usually means paying for build-out, equipment, EHR and practice management software, malpractice coverage, licensing, hiring and an initial supply of clinical products, including vaccines. Vaccines stand out for two reasons. First, you buy them before you have a patient base to pay for them. Second, you’ll buy them every year for the life of the practice, so a lower price in year one keeps paying off.
The volume problem
Without a GPO, however, a new practice buys at whatever price its small volume earns. Since a practice in its first year rarely reaches the volume behind better pricing tiers, it ends up closer to list price. A GPO closes that gap.
Where Vaccine Costs Hit a New Practice
In most offices, a handful of vaccines make up most of a practice’s vaccine budget. For adult primary care and pharmacy, that typically means Shingrix (a two-dose series), Prevnar 20, flu vaccines, RSV vaccines, COVID-19 vaccines and hepatitis vaccines. Pediatric practices, by contrast, spend most on the routine childhood series.
Because these products carry the highest prices and the most volume, even a modest percentage discount on them adds up over a year. That’s also why the first contracts to set up are the ones for the manufacturers you’ll buy from most.
Timing matters
Flu vaccine, however, works differently from other products. Manufacturers usually take pre-book reservations in late winter or early spring for the following fall. So if you open in the first half of the year, enroll early enough to make that window. Our yearly vaccine purchasing calendar lays out when to plan each type of order.
How USPPG’s Vaccine Purchasing Program Works
Specifically, USPPG is a GPO for independent physicians, independent pharmacies and the office managers who run purchasing for them. It negotiates contracts with vaccine manufacturers and then makes them available to members at no cost.
After you join, you also complete a GPO agreement for each manufacturer you want to buy from. Then you order through the channel each manufacturer’s page describes, at the contract price. As a result, USPPG reports that members save about 20% on average, with savings of up to 40% on some products, through a mix of contract pricing and rebates.
How a GPO compares with other ways to buy
- Buying direct without a GPO: any practice can open an account with a manufacturer. However, pricing then reflects your own volume, which is low in year one.
- Buying through a distributor without a GPO: this adds convenience, especially for mixed orders. Still, without a GPO contract, your price depends on your own volume and terms.
- Hospital system affiliation: some independent physicians affiliate with a health system to use its contracts. That route, though, can bring credentialing, administrative overhead and limits on independence.
- A vaccine GPO: by comparison, it provides contract pricing based on group volume while you keep your own accounts and independence.
For a neutral way to compare GPOs, see our checklist of questions to ask before joining a GPO.
Manufacturer Contracts Available Through USPPG
Before you enroll in any GPO, check its contracts against the vaccines you plan to stock. The table below lists USPPG’s current manufacturer partners and the main products each manufacturer page covers.
| Manufacturer | Key vaccines | Learn more |
|---|---|---|
| GSK | Shingrix (zoster), Arexvy (RSV), Boostrix (Tdap), FLUARIX and FLULAVAL (flu), Engerix-B (hepatitis B), Havrix (hepatitis A), Twinrix (hepatitis A and B), Pediarix (DTaP-HepB-IPV), Kinrix (DTaP-IPV), Infanrix (DTaP), Hiberix (Hib), Rotarix (rotavirus), Priorix (MMR), Menveo (MenACWY), Bexsero (MenB), Penmenvy (MenABCWY) | GSK vaccines |
| Pfizer | Comirnaty (COVID-19), Prevnar 20 (pneumococcal), ABRYSVO (RSV), Penbraya (MenABCWY), Trumenba (MenB) | Pfizer vaccines |
| Moderna | Spikevax and mNEXSPIKE (COVID-19), mRESVIA (RSV), mFLUSIVA (flu) | Moderna vaccines |
| CSL Seqirus | FLUAD (adjuvanted flu, 65+), FLUCELVAX (cell-based flu, 6 months+) | CSL Seqirus vaccines |
| Dynavax | Heplisav-B (adult hepatitis B, 2 doses) | Dynavax |
| Bavarian Nordic | RabAvert (rabies) | RabAvert |
Together, these contracts also cover most of the vaccines a primary care, pediatric or pharmacy setting gives. A few categories have no USPPG contract, however, so plan another source for those.
Notes for key categories
- Flu: contracts cover GSK, CSL Seqirus and Moderna products, so you can match vaccines to your patients’ ages.
- RSV: all three adult RSV vaccines, Arexvy, ABRYSVO and mRESVIA, come through partner contracts.
- COVID-19: Pfizer and Moderna contracts both apply. Eligibility now varies by product and age, so check each season’s FDA approvals.
- Shingles: because Shingrix is a two-dose series with a high list price, it’s often the single biggest savings line. For that reason, our Shingrix billing and coding guide covers the reimbursement side.
- Hepatitis B: both Engerix-B and Heplisav-B are available, along with pediatric Engerix-B for infants and children.
How Enrollment Works
Enrollment has only a few steps, so a practice that hasn’t opened yet can complete all of them.
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Register as a member
Submit the online registration at members.usppg.org. There’s no fee.
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Pick your manufacturers
Next, compare the manufacturer list with your planned formulary and choose the contracts you need.
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Complete each manufacturer’s GPO agreement
Each manufacturer has its own form, available on its page. After that, the USPPG team can help with any questions.
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Start ordering
Once your paperwork is complete, you can order right away through the channel each manufacturer’s page describes. Some manufacturers also work with Medico-Mart, USPPG’s distribution partner.
Other Purchasing Options to Consider
A vaccine GPO covers privately purchased vaccine only. Other programs, however, cover specific patients or product categories, so most practices use more than one.
Vaccines for Children (VFC) program
First, VFC provides federally purchased vaccine at no cost for eligible children 18 and younger. Children qualify if they have or are eligible for Medicaid, have no insurance, or American Indian or Alaska Native. Underinsured children also qualify, but only at a Federally Qualified Health Center, a Rural Health Clinic or a deputized site. Children in a separate CHIP program, by contrast, count as insured.
So if you’ll see children, enroll as a VFC provider through your state or local immunization program. Because VFC doesn’t cover privately insured children or adults, it works alongside GPO purchasing rather than replacing it.
Section 317 programs
Meanwhile, Section 317 of the Public Health Service Act funds state, local and territorial immunization programs. Among other uses, those programs can buy vaccine for uninsured and underinsured adults and for outbreak response. Since Congress sets the funding each year and programs vary by state, ask your state immunization program what’s available.
Medical supply GPOs
Beyond vaccines, other GPOs also cover medical supplies, equipment and office products. Some serve every type of provider, while others focus on large systems and expect higher volume. Check minimums and fees before you commit.
Payment processing
Card processing is another recurring cost to set up early. USPPG members can also review USPay for payment processing rates.
Building a Year-One Vaccine Buying Strategy
For a practice in its first year, three habits matter most: enroll early, plan by season, and set up the contracts you’ll actually use.
Enroll before you open
Since enrollment is free and has no volume threshold, there’s no reason to wait until patients arrive. With your manufacturer agreements in place, your first vaccine order already carries contract pricing, and you won’t miss a pre-book window.
Prioritize by volume and cost
Not every vaccine on your formulary offers the same savings, though. So complete the agreements for your highest-volume, highest-cost products first. For many primary care practices, that means GSK (Shingrix, flu and pediatric vaccines), Pfizer (Prevnar 20) and a flu manufacturer. Pharmacies, on the other hand, often start with shingles, flu, COVID-19 and pneumococcal vaccines.
Match stock to your patient mix
In the end, your patients decide which vaccines you’ll give most. A practice with many patients over 60, for example, will need more Shingrix, Prevnar 20, RSV vaccines and flu vaccines preferred for older adults. A pediatric practice, meanwhile, will lean on the GSK pediatric portfolio and VFC.
For office managers: set up GPO and manufacturer agreements during practice setup, not after you open. The USPPG FAQ page also answers common enrollment and ordering questions.
Frequently Asked Questions
What group purchasing options does a new medical practice have?
Most new practices combine a few options. For example, a vaccine GPO provides contract pricing on privately purchased vaccines. Meanwhile, the Vaccines for Children (VFC) program supplies vaccine at no cost for eligible children, and state Section 317 programs may cover some uninsured or underinsured adults. Broader medical supply GPOs can also cover non-vaccine products.
Can a brand-new practice with no purchase history join a vaccine GPO?
Yes, in most cases. USPPG, for example, has no minimum purchase history or volume requirement. Once a practice registers and completes the manufacturer paperwork, it can order at contract pricing right away. For that reason, it’s worth enrolling before you open so your first orders already carry contract pricing.
Is there a cost to join USPPG?
No. USPPG membership is free, with no enrollment fees, dues or volume commitments. You register, complete the GPO agreement for each manufacturer you plan to buy from, and then order at contract pricing. Like most GPOs, USPPG receives administrative fees from manufacturers rather than charging members.
How much can a new practice save on vaccines through a GPO?
Savings vary by product, manufacturer and contract. Overall, USPPG reports that members save about 20% on average, with savings of up to 40% on some products. Depending on the contract, savings appear as lower invoice pricing, as rebates after purchase, or both.
Who qualifies for the Vaccines for Children program?
Children 18 and younger qualify if they have or are eligible for Medicaid, have no insurance, or American Indian or Alaska Native. Underinsured children qualify too, but only at a Federally Qualified Health Center, a Rural Health Clinic or a deputized site. Children in a separate CHIP program, however, count as insured.
Which vaccine contracts should a new practice set up first?
First, start with the manufacturers whose vaccines you’ll give most often. For many primary care practices, that means GSK (Shingrix, pediatric vaccines and flu), Pfizer (Prevnar 20) and a flu manufacturer. Pharmacies, on the other hand, often prioritize shingles, flu, COVID-19 and pneumococcal vaccines.
To review every manufacturer contract in one place, visit the USPPG vaccine purchasing program page.
Sources
- CDC: Vaccines for Children Program Eligibility (updated August 27, 2026)
- Association of Immunization Managers: Section 317 Vaccine Purchase Funding (2024)
This article offers general information for healthcare providers and practice administrators. Because vaccine pricing, program availability and manufacturer contracts can change, contact USPPG for the most current program details.
Become a USPPG Member
USPPG is a physician buying group (PBG) that negotiates discounts on vaccines and other medical supplies by leveraging collective purchasing power. We partner with major vaccine manufacturers to secure lower prices and additional benefits.
Key Benefits:
- Membership is Free
- Access to Exclusive Discounts & Rebates
- Significant Cost Savings on Vaccines





