Government Healthcare Supply

Federal, state, and local government healthcare buyers — including VA, Indian Health Service, public hospitals, prison health systems, and state Medicaid — represent over $200 billion in annual procurement.

Who buys

The Department of Veterans Affairs (VA) is the largest single government healthcare buyer. Other major buyers include the Indian Health Service, Defense Health Agency (military health), Bureau of Prisons (federal corrections health), state correctional health systems, state psychiatric hospitals, public hospitals (Cleveland Clinic, Mayo Clinic for federal contracts; LA County, NYC HHC, Cook County Health for local), and state Medicaid programs.

What they buy

Medical equipment (imaging, surgical, ophthalmic), pharmaceuticals (through the Federal Supply Schedule for VA and through state Medicaid for state agencies), medical supplies (PPE, gauze, syringes), clinical services (locum tenens, dialysis, lab services), facility services (medical waste disposal, sterilization), and healthcare IT (electronic health records, medical imaging systems).

How to break in

For medical product vendors: VA Federal Supply Schedule (FSS) is the primary federal entry point. The VA negotiates Schedule pricing on behalf of federal and state government healthcare buyers. State and local healthcare buyers often participate in cooperative purchasing through the Vizient or Premier group purchasing organizations (GPOs). For clinical services: state healthcare procurement portals are the primary channel; many state Medicaid programs publish RFPs on state procurement systems.

Set-aside angle

VA Vets First contracting prioritizes SDVOSB and VOSB firms on VA contracts. Many federal healthcare contracts are set aside for small business under FAR Subpart 19.5. State and local healthcare procurement uses state-specific MBE/WBE/DBE programs.

Key NAICS codes for Healthcare Supply

  • 339112 — Medical Equipment Manufacturing
  • 325412 — Pharmaceutical Preparation Manufacturing
  • 423450 — Medical Equipment Wholesalers
  • 561612 — Security Guards (hospital security)
  • 621111 — Offices of Physicians
  • 622110 — General Hospitals

Where to register

Vendors in this vertical typically register on:

Related ProcureTap resources