Common use of Aggregation Pricing Option Clause in Contracts

Aggregation Pricing Option. Participating Members which (i) operate multi-facility systems and have the ability to coordinate the purchasing decisions of such facilities, (ii) are group purchasing organizations (“GPOs”), or (iii) have established networks of facilities for purposes of group purchasing shall be entitled to aggregate the purchasing volume within their respective systems, group purchasing organizations and networks in order to meet the desired volume tier. For example, the parent organization of a multi-hospital health system that has the ability to coordinate the purchasing decisions of its member facilities or a GPO with members that are Participating Members shall have the right to aggregate the purchasing volume of its facilities in order to meet the desired volume tier. In this example, these parent organizations may be designated as “top parents” and/or “direct parents” on the Membership Roster.