HMMS implements advanced transaction
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
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
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
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
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.
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
• Exchange services that support trading partner connectivity and
provide electronic transaction sets, order validation and reporting
• Content services utilizing the GHX AllSource product content
repository as the foundation for data synchronization and advanced
• Contract services that allow users to maximize contract utilization
• Procurement services that enable automation of the requisitioning
• Business Intelligence reports designed to provide strategic
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
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,
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.