2001 GHX Press Releases

WESTMINSTER, Colo. and MINNEAPOLIS—Nov. 26, 2001— Global Healthcare Exchange, LLC (GHX) and HealthNexis, LLC plan to combine their operations into a single, comprehensive Internet-based exchange. This transaction brings together many of the industry’s most advanced supply chain technologies and is supported by the participation of GHX’s owners, together with HealthNexis’ founders: AmerisourceBergen Corporation, Cardinal Health, Inc., Fisher Scientific International Inc., and McKesson Corporation. Through this combination of resources, supply chain participants will more quickly realize the benefits of e-commerce, including accelerated adoption of industry standards, more accurate information, reduced pricing inaccuracies, improved data reporting, and the availability of systems that support contract and rebate management. Supplier members of both organizations will be connected to GHX’s growing membership of 70 integrated delivery networks (IDNs), representing nearly 600 hospitals. The combined exchange will operate under the name Global Healthcare Exchange, LLC. The merger announcement follows recent GHX alliances with Neoforma, Inc. and AmeriNet, Inc. “Connectivity, participation and cooperation among all members of the supply chain is critical for e-commerce to reach its full potential,” stated GHX President Mike Mahoney. “HealthNexis and its membership of leading healthcare companies provide considerable e-commerce technology solutions and supply chain expertise. This combination reinforces GHX’s commitment to building an open and neutral healthcare exchange to drive supply chain savings.” The companies have each developed complementary products and services, which together provide greater value to users. For example, the adoption of industry standards will be accelerated by consolidating GHX’s AllSource™ catalog with its HealthNexis’ counterpart, the Product Data Manager, into one industry standard catalog. In addition, HealthNexis’ Contract Data Manager, designed to improve accuracy in the contracting process, will provide additional functionality for customers using GHX’s proven MemberSource™ exchange platform for purchasing. David Hurley, chief executive officer of HealthNexis, sees the merger as an historic event in healthcare: “We are creating the first fully operational, end-to-end healthcare supply chain technology solution. This is a unique foundation on which group purchasing organizations, manufacturers, distributors and healthcare providers can work together to drive inefficiencies out of healthcare.” Howard Kern, executive vice president and chief operating officer of Sentara Healthcare, welcomes both the GHX-HealthNexis union and the GHX-Neoforma alliance: “We are pleased to see the major distributors, manufacturers and GPOs working together to improve supply chain processes. Enhanced communication, price discrepancy identification and improved contract management will make a real positive impact on hospital supply chain efficiency and our bottom line. Together, real progress can be made towards a more efficient healthcare system.” Financial terms were not disclosed. The new entity will be based at the current GHX headquarters in Westminster, Colo. About HealthNexis HealthNexis, formerly the New Health Exchange, was founded in April 2000 by four of the nation’s largest healthcare companies: AmerisourceBergen Corporation (NYSE: ABC), Cardinal Health, Inc. (NYSE: CAH), Fisher Scientific International Inc. (NYSE: FSH), and McKesson Corporation (NYSE: MCK). The company provides information and technology solutions to healthcare product and pharmaceutical manufacturers, distributors and purchasing organizations. Its product platform increases supply chain efficiency by centralizing, synchronizing and standardizing the processes required to communicate, process and manage product, contract and transaction data. The company’s core offering consists of Transaction Clearinghouse, Product Data Manager, Contract Data Manager and Data Services. For more information about HealthNexis, please visit www.healthnexis.com. About Global Healthcare Exchange GHX is an Internet-based trading exchange from which hospitals can purchase both medical and non-medical products more easily, quickly, and accurately than ever before. GHX is building a normalized, verified industry standard catalog, which will take advantage of deep connectivity between GHX, hospitals, and suppliers to improve efficiencies and add value throughout the healthcare supply chain. The privately held company was founded in March 2000 and its membership now includes more than 100 supplier members and nearly 600 hospital members, representing 70 integrated delivery networks (IDNs). Equity members of GHX include Johnson & Johnson; GE Medical Systems; Baxter International, Inc.; Abbott Laboratories; Medtronic, Inc.; Becton, Dickinson & Co.; Boston Scientific Corporation; C.R. Bard, Inc.; Guidant Corporation; Siemens Medical Solutions and Tyco International, Ltd. For more information visit www.ghx.com.
Posted on Monday, November 26, 2001 Posted by host
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