OBJECTIVES: Complexities in healthcare organizations’ management, different capabilities as well as various necessities of service providing centers, and ever-increasing environmental risks lead organizations to share the strengths of their subsidiaries and create synergies in value creation to promote health services management. In this context, regarding limited resources, group purchasing organization measure their performance through periodic assessments to maximize their own efficiency. This study was aimed to evaluate the performance of hospital pharmacies’ group purchasing organization (HPGPO) in Shahid Beheshti University of Medical Sciences.

METHODS: The study was performed in both qualitative and quantitative phases. In the qualitative phase, semi-structured interviews with the current and former directors of the pharmacies were conducted and then the results were analyzed through “thematic analysis” method. Considering value creation or value destruction, in the quantitative phase, thanks to the Boston Consulting Group model, a questionnaire consisting of eight dimensions and 85 questions was designed and completed by the pharmacies’ managers.

RESULTS: The net value created by the HPGPO was estimated 10.77%. Regarding health system goals, the highest value had been created through managerial-executive synergies and strategic supports, and the most value destruction had been happened due to the complexity of processes as well as imposing additional expenses. Likewise, the strengths and weaknesses of HPGPO were categorized in eight following areas: supply chain management, information technology, internal and external relations, executive supports, financial management, organizational structure, human resource management, and legal subjects.

CONCLUSIONS: Finally, eight mentioned areas have been discussed and solutions for improving the performance of HPGPO, decreasing additional expenses, and simplification of procedures were concluded to promote healthcare management.