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Value You Can Measure

Savings for you, savings for healthcare

There’s a startling amount of savings embedded in your healthcare supply chain, whether you’re a provider or a supplier. GHX helps you find it and capture it.

Driving costs out of the supply chain—and delivering those savings to you—is the heart of what we do.


We are passionate about measuring the value we deliver and helping you understand and maximize it. Our value calculation methodology, which includes more than 70 underlying calculations, has been evaluated by Forrester Consulting and conforms to their rigorous Total Economic ImpactTM (TEI) model.*

This Forrester-certified methodology calculates the savings achievable within your supply chain and, by extension, within the healthcare industry as a whole.

As a GHX customer, you are already reaping much of these savings, but are you leaving additional savings on the table? A quick comparison of the two tickers at the top of the right-hand column indicates that you may be.

The legacy of our "5 in 5" commitment

From 2010 to 2015, we pledged to drive $5B in healthcare savings in 5 years through our "5 in 5" initiative. By the end of 2014, we over-achieved, delivering $5.3B in savings over the 5-year span. 

Our current approach to calculating value builds on the momentum generated in the "5 in 5" initiative. We continue to track, report and celebrate the annual savings we—both you and GHX working together—deliver to healthcare through automated, efficient and accurate supply chain processes. And we always measure success based on credible methodologies.

What drives value in the supply chain?

Inefficiencies can plague your supply chain. You drive them out through automation, data accuracy, and reduced discrepancies. Specifically, you want to strive for a high degree of:

  • Transaction automation – Savings accumulate as a greater percentage of your trading partner transactions are conducted electronically through the GHX Global Exchange, as opposed to relying on manual, paper-based processes. Automation drives savings across the supply chain, from sourcing and requisitioning through payment.
  • Trading partner network – The higher the percentage of your trading partners doing business with you electronically, the greater your savings.
  • Accurate transactional data – Discrepancies and exceptions that arise from inaccurate or unsynchronized pricing, catalog and contract data have a detrimental ripple effect across your supply chain. Minimizing and eliminating exceptions can drive substantial labor savings and provide better visibility for value-based decision making.
  • On-contract spend – Validating your negotiated contact pricing is actually reflected and propagated throughout your transaction workflow is essential to driving supply chain value.

Value for each GHX customer = value for healthcare

The savings our customers deliver to healthcare through the use of GHX technology, shown in the blue ticker above, are calculated for each individual customer account based on the Forrester TEI-certified calculations and aggregated to generate the total savings for participating GHX providers and suppliers.

As a GHX customer you are already contributing to the overall savings number by driving costs out of your supply chain. Take pride in your contribution.

The opportunity for even greater savings

While our customers are delivering well over $1 billion in savings to healthcare annually, the savings that remain unrealized, shown above in the yellow ticker, are eye-opening.

This unrealized savings number is also driven by our Forrester TEI-certified methodology. We calculate the potential savings with two “what if” assumptions: What if our current customers (1) were using the full suite of our integrated solutions (not just a subset), and (2) were employing those solutions at average rates of utilization—not best-in-class, but simply average utilization rates based on existing GHX customer usage.

What if customers committed to utilizing our products at best-practice levels, as opposed to the average levels used in the calculation? What if organizations not currently using GHX solutions came on board? The potential savings to healthcare would be even greater than what’s shown above. That’s savings that could be extracted from the supply chain and applied to better patient care, research, product development and other life-saving measures.

Working together we can close the savings gap.

Awards and Recognition

We annually recognize organizations that exemplify the commitment to driving supply chain value through the following programs:

  • GHX Best 50 Award – We recognize provider organizations with performance measurements that fall in the top 50 nationally, based on key metrics from their GHX Provider Scorecard. 
  • GHX Millenium Club – This award recognizes provider and supplier organizations that generate over 1 million automated transactions (including advanced order sets) annually through the GHX Exchange to create efficiencies, accuracy and visibility for their own organizations and for their trading partners.
  • GHXcellence Awards – Each year at the GHX Healthcare Supply Chain Summit, we recognize a select group of organizations that serves as an inspiration to the industry for their ability to drive out costs, reduce waste, and improve business performance through supply chain automation and trading partner collaboration.

Learn more and see this year's winners.

Where is value presented in GHX solutions?

  • Quarterly Scorecards – Your organization's scorecard is presented at the corporate level to show the overall results of processing transactions through GHX for the past six month period. It provides a snapshot of how well your organization is performing toward your supply chain / e-commerce goals.
  • GHX Provider Intelligence – Our cloud-based application that measures and tracks supply chain metrics, providing you with greater visibility into operational and financial performance. Interactive graphs and charting tools visually represent key performance indicators (KPIs), helping enable you to better prioritize supply chain efforts and initiatives.
    More >>

* TEI™ Compliance Statement

GHX commissioned Forrester Consulting to review the Provider solution ROI model in November 2014 using its proprietary Total Economic Impact™ methodology. Forrester deems that the Provider solution ROI model conforms to the TEI fundamentals and principles of a sound business case. The intent is for GHX to guide prospects through the questionnaire to solicit inputs specific to your business and technology environment. GHX is not permitted to change the calculations or equations. Forrester believes that this analysis is representative of what companies may achieve with GHX's Provider solution services based on the inputs provided and any assumptions made. Forrester does not endorse GHX or its offerings.

Legal Disclaimer

Although great care has been taken to ensure the accuracy and completeness of this model, GHX and Forrester Research are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein. The tool is provided ‘AS IS’ and GHX and Forrester Research make no warranties of any kind.

As part of the certification process, Forrester used the following methodology:

  1. Forrester gathered data from existing Forrester research relative to GHX solutions and the market in general.
  2. Forrester interviewed GHX marketing and strategy personnel to fully understand the value proposition of GHX solutions.
  3. GHX briefed Forrester in detail about the healthcare provider ROI model developed by GHX.
  4. Forrester conducted in-depth interviews and an online survey with GHX customers to obtain data with respect to costs, benefits, and risks. In total, Forrester interviewed 4 healthcare providers and 4 suppliers and collected 20 complete responses each from Provider and Supplier online surveys.
  5. Forrester assessed in detail the overall logic, completeness of the model, ease of use, accuracy of the calculations, appropriateness of default values, and transparency of the tool and its outputs.
  6. Forrester formulated specific change requests / recommendations.
  7. GHX implemented the required changes to meet Forrester’s criteria.
  8. Forrester reviewed the changes to ensure that the revised models are TEI-compliant.
New Study:

The Total Economic Impacttm Of The GHX Platform

Cost Savings And Business Benefits Enabled By The GHX Platform For A Healthcare Provider And A Healthcare Manufacturer

The savings you delivered to healthcare in the last 12 months:
...and what could have been:
Transaction volume in the last 12 months
The number of requisitions, POs and invoices that have been processed through the GHX exchange in the last 12 months
The number of trading partner connections established and managed by GHX
The number of supplier divisions ( > 600 manufacturers)
The number of hospital beds represented by GHX members
The number of healthcare provider facilities ( > 4,100 hospitals)
Percentage of med-surg products represented by members
About GHX
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Value You Can Measure

Global Healthcare Exchange, LLC (GHX) drives costs out of healthcare with cloud-based supply chain management technology and services in order to help enable better patient care and savings by maximizing automation, efficiency, and accuracy of business processes.