LOUISVILLE, Colo., Jan. 18, 2011 /PRNewswire/ -- GHX, in partnership with healthcare providers and suppliers, achieved more than $730 million in documented savings across the North American healthcare supply chain last year, one of many key accomplishments reported in the company's 2011 Business Update. The company, which celebrated its tenth anniversary in March, continues to have the largest footprint in the healthcare supply chain with 8,490 provider facilities and 4,840 medical-surgical supplier divisions in North America, and an additional 1,500 provider organizations and 350 suppliers in Europe, transacting business using GHX.
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In recent 2010 reporting to its Board of Directors, which includes both independent board members and executives from organizations that participate as equity owners of GHX, the GHX network accounted for connectivity to hospitals representing more than 80 percent of licensed beds in the United States alone and to supplier organizations that deliver approximately 85 percent of the medical-surgical products sold in North America. GHX also connects providers and suppliers in nine European countries.
The GHX network in the U.S. and Canada is now driving more than $38 billion in electronic dollar volume through the exchange, an increase of more than 23 percent over transactions at the end of 2009, according to the report.
A key milestone in 2010 was early success toward the company's "5-in-5" strategic goal of cutting $5 billion in healthcare costs over five years, which netted $734 million in savings for the industry in the first year--10 percent above the first-year goal set by GHX. According to President and CEO Bruce Johnson, the company expects to exceed those savings in subsequent years based on the research and development already underway at GHX.
"The industry is at an historic inflexion point," said Johnson. "To deliver a sustainable healthcare system, we strongly believe providers and suppliers must seek new models for engagement and collaboration in order to continue to cut costs from the system. This requires a new approach that increases goal alignment and data visibility, while providing even greater focus on positive patient outcomes."
"Our mission is to make a measureable difference in healthcare efficiency and outcomes for patients," added Johnson. "Initially healthcare organizations joined GHX because we provided an open and neutral global healthcare exchange. Today we're transforming healthcare's linear supply chain into a personalized 'healthcare supply cloud,' working to provide 360-degree visibility into areas affecting clinical and financial performance."
In its ongoing commitment to delivering great efficiencies and solutions to the healthcare industry, GHX funds double-digit reinvestment in the development of new products, services and markets. The company introduced seven new or enhanced products and services to improve the process by which healthcare providers search, source, procure, buy and pay for products.
The company reported several marketplace trends it believes will continue to affect healthcare in the coming year:
- Cost Cutting and Operational Efficiencies - Organizations continue to identify opportunities to cut even more costs. Efficiency is extended to how products were utilized and how that translates into better clinical and financial outcomes.
- Consolidation - Bigger companies with cash will continue buying smaller companies – feeding their innovation pipeline and keeping products in development and production rather than let those small companies fail. On the other side of the equation, there is a need to push more care outside of the expensive acute care setting. There is a need to create organizations that have economies of scale and scope to invest in more supply chain expertise. Single-owned hospitals will continue to struggle for profitability.
- Globalization - The changing tide of healthcare is washing across the globe. Reform is often debated as a U.S.-only initiative, but it's not. It's critical that the industry address how to drive more efficient care globally. The ability to deliver cost-efficient, quality care is a universal issue.
- Standardization - The drive continues toward greater standardization. This will be foundational, based on more effective automation and more effective data-sharing. Data synchronization and standardization, and regulations such as Unique Device Identification will become increasingly important.
Global Healthcare Exchange, LLC (GHX) makes healthcare more efficient by delivering software and services that enable both healthcare providers and suppliers to increase efficiency, lower costs and deliver better patient care. With the largest footprint in healthcare supply chain management, GHX connects more than 80 percent of licensed hospital beds at U.S. hospitals, as well as providers in Canada and Europe, with the suppliers from which they purchase the majority of their medical-surgical supplies. GHX is transforming today's linear healthcare supply chain into the industry's only healthcare supply cloud, providing 360-degree visibility into areas affecting both clinical and financial performance. Working with GHX, organizations can improve business processes, automate supply chain systems and work together in a collaborative environment to solve the tough challenges facing healthcare today. GHX is owned by members of the healthcare industry, including Abbott Exchange, Inc.; AmerisourceBergen Corp.; Baxter Healthcare Corp.; B. Braun Medical Inc.; BD; Boston Scientific Corp.; Cardinal Health, Inc.; Covidien; C.R. Bard, Inc.; Thermo Fisher Scientific Inc.; GE Healthcare; HCA; Johnson & Johnson Health Care Systems Inc.; McKesson Corp.; Medtronic USA, Inc.; Owens & Minor; Premier, Inc.; Siemens; University HealthSystem Consortium; and VHA Inc. For more information, visit www.ghx.com.