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e-Commerce

HMMS implements advanced transaction sets

LONDON and TORONTO, Ont. – Healthcare Materials Management Services (HMMS), a Purchasing, Accounts Payable and Logistics organization serving 26 hospital sites and other healthcare providers in Ontario, is spearheading the use of advanced transaction sets through GHX LLC (GHX) to maximize efficiencies and savings in the healthcare supply chain.

While an increasing number of hospitals in Ontario and across Canada are sending and receiving electronic purchase orders and acknowledgments, HMMS is working to automate additional transactions such as invoices, payments, supplier catalog updates and advanced shipping notifications.

A recognized leader in supply chain best practices, HMMS is one of six healthcare organizations participating in the e-Supply Chain Project, which is supported by OntarioBuys and managed through the Healthcare Supply Chain Network (HSCN), a network of healthcare supply chain provider and supplier professionals.

Three other project sites have also chosen GHX to facilitate automation of existing supply chain processes through the expanded use of e-commerce and other technologies.

“Over the past eight years, HMMS has documented more than Cdn$70 million in savings by integrating and consolidating supply chain services,” says Mike Rosser, HMMS General Manager and Chair of the eSupply Chain Project. “Already, the initial testing and implementation of advanced e-commerce transactions through GHX are generating additional savings for our customers and this will continue to grow as more suppliers are activated.”

HMMS, which uses the McKesson Pathways Materials Management (PMM) system, is fully integrated with GHX through the McKesson Horizon Supply Source (HSS) web based e-commerce network.

GHX and McKesson have a strategic agreement in place that enables direct connectivity between HSS and GHX, and includes access to the GHX AllSource product content repository. Suppliers publish and verify the latest and most accurate product information in AllSource, which providers can use to ensure the accuracy of data contained in their internal systems.

Initial testing of electronic invoices was done with Johnson & Johnson Medical Products through GHX. HMMS is now processing more than 700 e-invoices monthly with a 95 percent first-time, three way auto match directly into the McKesson PMM system.

With proper data cleansing and e-invoices, significant staff time is saved, which can be used to enhance customer service or save operating dollars. The Health Distribution Management Association says it costs between $15 and $50 (shared by hospitals and suppliers) to address a single invoice discrepancy.

Processing supplier invoices faster with the use of electronic funds transfer for payments has allowed HMMS to increase cash discount revenue by more than 100 percent over the past three years.

HMMS is currently testing and evaluating the use of e-catalogues and advanced shipping notices through GHX. Receipt of these documents electronically reduces the time and errors associated with manually entering data into hospital systems. With better data accuracy and faster invoice receipt, hospitals can pay suppliers faster and take advantage of early payment discounts when available.

“HMMS is a recognized leader in supply chain innovations and best practices in Canada, and we are proud to be supporting their efforts as part of the eSupply Chain Project,” says GHX Canada General Manager Nils Clausen. “ By moving forward with additional, advanced transactions sets, HMMS continues to play an important role in identifying and demonstrating the value of supply chain automation for hospitals across Canada. “

A 2004 study, authored by Deloitte and sponsored by HSCN, found that Canadian hospitals can expect to reduce their supply chain costs by 2 to 6 percent by adopting a fully integrated e-commerce solution. Integrating materials management and ERP systems to GHX enables connectivity for Canadian hospitals with the majority of the suppliers from whom they purchase products most often.

More than 296 hospitals and 43 suppliers are currently participating in GHX in Canada.

About GHX
GHX provides an open and neutral electronic trading exchange, as well as complementary products and services, designed to improve the procurement-to-payment process in the healthcare supply chain. Service offerings include:
• Exchange services that support trading partner connectivity and provide electronic transaction sets, order validation and reporting tools
• Content services utilizing the GHX AllSource product content repository as the foundation for data synchronization and advanced content services
• Contract services that allow users to maximize contract utilization
• Procurement services that enable automation of the requisitioning process
• Business Intelligence reports designed to provide strategic decision-making data
Through these services, healthcare providers and suppliers can improve efficiencies, automate processes and reduce operating expenses. Equity owners of GHX are Abbott Exchange, Inc.; AmerisourceBergen Corp.; Baxter Healthcare Corp.; B Braun Medical Inc.; Becton, Dickinson & Co.; Boston Scientific Corp.; Cardinal Health, Inc.; C.R. Bard, Inc.; Fisher Scientific International, Inc.; GE Healthcare; HCA; Johnson & Johnson Health Care Systems Inc.; McKesson Corp.; Medtronic USA, Inc.; Owens & Minor; Premier, Inc.; Siemens; Tyco Healthcare Group, LP; University HealthSystem Consortium.; and VHA Inc. For more information, visit www.ghx.com.

About Healthcare Materials Management Services (HMMS)
Healthcare Materials Management Services (HMMS) was created in February 1997 as a joint venture between London Health Sciences Centre and St. Joseph’s Health Care, London to integrate and consolidate the functions of Purchasing, Accounts Payable, Receiving and Inventory Management. Today, HMMS has developed partnerships with other hospitals to provide similar services to many other healthcare organizations. HMMS has enjoyed considerable success in bringing together staff and services into the largest and most successful venture of its kind in Canada, serving organizations with a combined operating budgets of more than Cdn$1.5 billion and more than 3,000 hospital beds.

About Healthcare Supply Chain Network
The Healthcare Supply Chain Network (HSCN) is a Canadian network of healthcare supply chain provider and supplier professionals. HSCN was established to promote the implementation of supply chain management leading practices in healthcare that result in greater effectiveness and efficiency, improved patient outcomes and greater alignment between supply chain partners.

About e-Supply Chain Project
The e-Supply Chain Project is managed through the Healthcare Supply Chain Network (HSCN) and supported by OntarioBuys. Six project sites form the e-Supply Chain project and collectively represent more than 46 hospital facilities in Ontario. The e-Supply Chain Project will reduce hospital operating costs, improve service levels, and support the delivery of better patient care through the development and implementation of leading supply chain practices. For more information, visit www.hscn.org/escproject.

About OntarioBuys
Announced by the Ontario Government in May 2004, OntarioBuys’ mandate is to facilitate and accelerate the implementation of integrated Supply Chain Management leading practices in Ontario's broader public sector, hospitals, universities, colleges and school boards. OntarioBuys is supporting Ontario hospitals to improve the efficiency, effectiveness and responsiveness of their supply chains, for the benefit of patients, health care workers and the public generally.

 

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