Monday, September 30, 2013
GHX Award Winning Healthcare Supply Chain Management Solution
Healthcare spending accounts for 18% of the gross domestic product in the United States, with an expected 6% growth rate through 2020. GHX, a healthcare oriented supply chain management company, focuses on reducing hospital expenses through increasing efficiencies of their supply chains. They offer products that provide an open electronic trading exchange, procurement and accounts payable automation, inventory management, business intelligence and reporting, with data synchronization between all aspects of the supply chain.
Healthcare faces particularly difficult challenges in managing their costs and supply chains, in that they are regulated by government bodies and are not paid directly by the end consumer, but by third party payers. With the advent and implementation of Electronic Health Records (EHR) hospitals have access to more information than was available to them before, and are able to increase the quality of their patient care. This improves larger hospitals’ ability to handle the increase in demand, while smaller hospitals which are unable to employ IT management solutions, have had to close their doors.
GHX offers an additional level of supply chain management improvement over what EHR's afford alone. GHX offers hospitals access to group purchasing distributors, enabling hospitals to group their purchase orders together, ordering supplies in bulk, reducing the price per unit across the board. Recently, GHX has released a software solution that enables hospitals and device distributors to have access to and share information through portals that show product usage during specific procedures. Being integrated through the entire system, this enables easy inventory management feedback, with automated reorder points and dashboards to provide both hospital managers and distributors with additional feedback to improve performance. GHX has shown that through automating hospital purchase orders and invoices, are better able to track their spending, and save on average $1 million annually to provider organizations implementing their solutions; $3.5 billion industry wide savings in North America since 2010. Due to their supply chain management solutions, GHX was recently awarded the Global Healthcare Supply Chain Management Award from Frost and Sullivan for 2013.
What other industries are behind the curve, and could benefit from additional implementation of IT supply chain management solutions? Are there any situations where having an automated purchase ordering system will create larger problems in supply chain management, through the whip effect, when using data analytics? Can this be mitigated through looking at average product usage between multiple hospitals?