GHX and its supplier and provider customers have surpassed $4 billion in supply chain savings for the North American healthcare market. This is a major milestone in the company’s “5-in-5”goal, which aims to take $5 billion out of the cost of healthcare during the five year program, ending December 31, 2014(1). By helping drive greater accuracy into more automated supply chain processes, GHX and its customers are leading the charge in transforming the healthcare industry by reducing costs and helping providers deliver cost-effective, high-quality patient care.
GHX has long been an advocate for supply chain collaboration and transparency among healthcare trading partners to reduce costs, increase efficiencies and help free-up time, money and resources to focus on the patient. As the second largest and fastest growing expense for healthcare organizations, the supply chain is both a challenge and major opportunity for healthcare companies.
GHX customers are increasing savings within their organizations and driving “5-in-5”savings by extending automation beyond purchasing to areas such as master data management, contracting and invoicing. For example, the Medical University of South Carolina (MUSC) avoided $1 million in costs stemming from inaccurate data and inefficient processes and secured $370,000 in savings related to contract and tier price compliance within the first 12 months of using the GHX NuViaSM content management solution.
The success of GHX and its customers in continuously driving costs out of healthcare underscores the importance of working more efficiently, collaboratively and with increased automation. “5-in-5”savings are driven primarily by conducting as much business as possible electronically and sending more types of documents and volume as EDI (electronic data interchange). GHX has demonstrated that its customer base can significantly increase savings by submitting more purchase orders, purchase order acknowledgements, advance ship notices, invoices and other electronic documents through GHX, reducing costs associated with manual ordering and related processes, and by automating more of their supply chain business processes.
“In today’s polarized political healthcare environment, we’re so proud of this accomplishment because it was driven by business partners who are thinking differently and working together to ultimately reduce the cost of healthcare and keep focus where it belongs – on the patient,” said Derek Smith, chief commercial officer, GHX. "To put $4 billion in savings in perspective, this amount of money could be used to hire 62,500 nurses and 35,000 doctors or insure more than 50,000 children through Medicaid or other funded programs."
About GHX
Global Healthcare Exchange, LLC (GHX) is driving costs out of healthcare by transforming the healthcare supply chain. Working with providers and suppliers, GHX is accelerating change by providing a faster, more efficient and collaborative supply chain that will take billions of dollars out of the cost of healthcare. For more information, visit www.ghx.com and The Healthcare Hub.
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