Driving costs out of healthcare through the supply chain
Across healthcare, the need to cut costs and operate more efficiently has never been greater. In these turbulent times, it's not an exaggeration to say your organization's survival may depend on it. At Global Healthcare Exchange (GHX), our mission is focused on doing just that—helping increase your operational efficiency and drive down your costs of doing business. We do this by automating your supply chain, increasing visibility into information and providing business intelligence tools to help you make smarter, better and faster decisions that impact your bottom line.
We understand how complex the business of healthcare is. So we focus on helping you simplify things so you can focus on what you do best—caring for patients or developing the next new medical-surgical product. Lowering the cost of healthcare: it's OUR business.
As a healthcare technology company, GHX helps hospitals and the suppliers they work with increase efficiency, lower costs and, ultimately, provide better patient care. With the largest footprint in the healthcare supply chain, we deliver cloud-based technology and strategic healthcare consulting services enabling organizations like yours to make the best use of that technology.
GHX helps automate and eliminate manual supply chain processes. As a result, transactions move faster. Visibility into supply chain data improves. Hard-dollar savings can be realized. Resources can be reallocated, driven by the dramatic improvements in efficiency our solutions deliver.
With GHX, you get 360-degree visibility into areas affecting both clinical and financial performance. That's because we provide access to real-time information on your market, your products, your revenue and the patient. You have the end-to-end visibility necessary for better decision making—and that can make the difference between business success and failure.
More than 4,100 healthcare providers and 400 manufacturer divisions in North America and another 1,500 provider organizations and 350 suppliers in Europe do business electronically through our trading exchange. As trading partners, they form the largest community in healthcare working together to streamline the purchasing and delivery of medical-surgical products. That community collectively has cut more than $4.3 billion from the cost of healthcare since 2010 and is on track to cut $5 billion by the end of 2014.
In healthcare, every dollar counts. Collaboration and trust are critical. GHX plays a pivotal role in facilitating both.
From our inception, we have provided an open and neutral bridge between healthcare providers and the manufacturing and distribution organizations that support them. We enable all parties to a transaction to conduct business quickly, accurately and efficiently. At the same time, we have been able to build a sense of community and trust among our trading partners, resulting in new ways of working together. Our common goal: balancing the cost/quality equation in healthcare.
Given the challenges facing healthcare today, cutting costs has never been more important. With declining reimbursements and the mandates of healthcare reform, many hospitals find it difficult to remain profitable and some even to keep their doors open. Suppliers, on the other hand, bear the burden of selling, general and administrative expenses that are nearly twice those in any other industry.
What can your organization do to meet these challenges head on? While you know you need to plan for the future, you also must act now to bring down costs or you might not survive.
Healthcare spending accounts for 17.6 percent of the gross domestic product in the United States, and that is expected to grow at an annual average rate of 5.8 percent through 2020. Supply chain costs are the second largest and fastest growing operational expense for most hospitals, which also face declining reimbursements and uncertainties connected to healthcare reform. Studies show 30 percent of hospitals today already are unprofitable.
With few prospects for increased revenue, your best option may be to find ways to cut costs. Our job is to help you do that by making your supply chain a strategic tool. Your continued viability, and with it your ability to help patients, depends on it.