Savings made by hospitals using GHX
TORONTO and OTTAWA – In just six
months, Champlain Health Supply Services (CHSS), in eastern Ontario, was
able to record aggregated cost savings of $467,000 – nearly twice
the amount targeted for the entire first year – in part by employing GHX
to improve the quality of data across multiple facilities.
At the end of the first year, CHSS also has achieved one-third of its
savings goal of $1.5 million for next year and has targeted $34
million in savings over the next nine years.
Champlain Health Supply Services (CHSS) was formed just over a year ago
to integrate sourcing, procurement and logistics for a group of
hospitals in the greater Ottawa area of Canada, all with different
information technology (IT) systems.
CHSS undertook the data cleansing project to build its business case for
a large supply chain integration initiative that will connect 12
participating hospitals with 90 percent of the trading partners from
which they purchase medical-surgical supplies and with HealthPRO, their
group purchasing organization (GPO).
This initiative will allow them to conduct business electronically
through a consolidated integration platform. GHX is providing the
technology platform as well as data and price management solutions.
Having accurate, quality data is key to the success of any supply chain
improvement initiative, John Martin, Director Hospital Services,
Queensway Carleton Hospital, told an audience of healthcare providers
and suppliers at the 2010 GHX Supply Chain Summit in Orlando, Fla.
Martin is regional lead for Integrated Supply Services for CHSS.
“Without having a high degree of confidence in your data, it's difficult
to establish a baseline,” Martin said. “And if you can't establish a baseline,
it's difficult to create a business
case and measure success. You don't know what you don't know until you
try to measure it.”
CHSS recognized that dealing with the quality of data across multiple
sites was one of the most significant challenges it faced. To address
that challenge, it engaged GHX advanced content services to validate its
contract savings opportunities against its GPO data, then used the data
to develop its business case and move forward.
“Without GHX, it wouldn't have been possible to build our business
case,” Martin said. “When we began, we had six item
masters to compare against HealthPRO's contract file. GHX helped us
clean up those item masters so we could validate contract price
CHSS also made it possible for all of its member hospitals to conduct
business using electronic data interchange (EDI). Prior to working
with GHX, only two hospitals were using EDI for significant volumes of
transactions. Nils Clausen, general manager, GHX Canada, said the fact
that CHSS already is documenting savings from its supply chain
integration efforts shows that the participating healthcare
organizations, which have a history of working together to improve the
delivery of patient care and services in the Champlain region, have
begun a similar collaborative effort to address supply chain
“CHSS has a long-term vision of integrating sourcing, procurement
and logistics for participating hospitals and ultimately other
healthcare providers, and GHX will continue to support them as they
implement technologies and processes to achieve that vision,”
As the business hub for healthcare, Global Healthcare Exchange, LLC (GHX)
enables healthcare providers and suppliers in North America and Europe
to reduce costs and improve margins by automating processes, reducing
operating expenses and increasing knowledge-based decision making.
Products and services include trading partner connectivity, order and
contract management and validation, data synchronization, sales force
automation and business intelligence. Equity owners of GHX are Abbott
Exchange, Inc., AmerisourceBergen Corp., Baxter Healthcare Corp., B. Braun Medical
Inc., BD, Boston Scientific Corp., Cardinal Health, Inc., Covidien, C.R. Bard,
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.
About Champlain Health Supply Services (CHSS)
Hospitals in the Champlain LHIN have a history of collaboration, working
together to improve the delivery of patient care and services to the
clients in the region. To this end, Champlain Health Supply Services (CHSS)
was incorporated in the Spring of 2008. The long term vision of CHSS is
to implement a shared service organization to integrate sourcing,
procurement and logistics for Hospitals and ultimately other health care
providers in the Champlain region. The integrated Supply Chain system
will improve client performance and generate savings for use in direct
patient care. The Sourcing integration initiative is underway with the
12 hospital participants in the Champlain Health Supply Services
organization. A parallel activity for Champlain regional logistics is
completing its business case approval process and a Request for Proposal
to complete an Implementation Analysis for regional Procurement has been
Posted June 17, 2010