In this paper, basic characteristics of group purchasing organizations ( GPOs) and its implications for US health care system are analyzed using a literature research method. The main contents include the development process, type, basic functions, drug procurement processes, fee sources, characteristics and influence for the hospi-tals, supplies, regulators of GPOs. We suggest that GPOs have helped US health care providers save a lot of money and played an important role in the healthcare supply chain. We also suggest that market mechanisms should be intro-duced widely concerning the model innovation and improvement of domestic drug procurement. At the same time, government and the market should be coordinated properly. Moreover, scientific evaluation methods should be set in consideration of drug quality, prices and its economic practicality.