GHX Launches New Savings Calculators | GHX

GHX Launches New Healthcare Supply Chain Savings Calculators at AHRMM15

Providers and suppliers now able to track actual and potential healthcare industry supply chain savings based on new independently certified return on investment calculators
Indianapolis, IN and Louisville, CO - Monday, August 10, 2015 -

Global Healthcare Exchange, LLC (GHX) today announced at the AHRMM15 Healthcare Supply Chain Conference (Booth 811, Indianapolis, Aug. 9-12, 2015) two new healthcare supply chain savings tickers that track actual and potential savings available to healthcare providers and suppliers. The new tickers are based on the recently announced GHX value calculation methodology, which includes more than 70 individual calculations and industry averages, evaluated by Forrester Consulting and conforming to its rigorous Total Economic ImpactTM (TEI) methodology. The two GHX healthcare savings tickers are available on the company’s website.

The new savings tickers are one of the first outcomes of the Forrester Consulting TEI™ Compliance Review. GHX commissioned the compliance review to help ensure that its ROI calculations meet the standards of Forrester’s rigorous cost and benefit analysis framework. The new calculation tickers provide a daily update on the savings being achieved by GHX solutions throughout the industry and the additional savings that can be achieved with greater supply chain automation.

"GHX customers are currently delivering well over $1 billion in savings annually to healthcare," said Bruce Johnson, President and CEO, GHX. "We started tracking the savings our customers were delivering to their organizations and the industry back in 2010. Since then, we’ve tracked more than $6 billion in savings that can be put toward quality patient care instead of waste in business processes. But what our new tickers expose is how big the unrealized savings opportunity is - $2.8 billion per year. While the challenges facing healthcare are significant, there remains a tremendous opportunity to deliver even greater efficiency that can result in significant measureable savings."

This unrealized savings number is also based on the GHX value calculation methodology evaluated by Forrester Consulting. GHX conservatively calculated the potential savings with two “what if” assumptions: What if GHX customers (1) were using the full suite of GHX integrated solutions, and (2) were employing those solutions at average – not even best-in-class - rates of utilization based on how existing GHX customers with those solutions are currently using them.

Supply chain efficiency measured by the new GHX ticker comes from:

  • Transaction automation: savings accumulate as a greater percentage of supply chain transactions are conducted electronically thru EDI (Electronic Data Interchange) as opposed to manual, paper-based processes.
  • Trading partner network: the higher the number of electronic trading partners, the greater the savings.
  • Accurate transactional data: discrepancies and exceptions that arise from inaccurate pricing, catalog and contract data have a detrimental ripple effect across the supply chain. Minimizing and eliminating exceptions can drive substantial savings and yield visibility to key data for better decision making in a value-based environment.
  • On-contract spend: confirming that negotiated contact pricing is actually reflected and propagated throughout transaction workflow is essential to driving supply chain value.

AHRMM15 Supply Chain Conference

Conference attendees at the AHRMM15 Supply Chain Conference can compare their savings to industry benchmark results at the GHX booth #811. Attendees must bring the following information to the GHX booth to receive the custom benchmark report:

  • Total supply spend
  • Number of purchase orders processed
  • Purchase order discrepancy rates
  • Percentage of on contract spend
  • Percentage of spend eligible for early pay discount

About GHX

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. GHX offers healthcare providers and suppliers an open and neutral electronic trading exchange that delivers procurement and accounts payable automation, contract and inventory management, vendor credentialing and management, business intelligence, and other supply chain-related tools and services. For more information, visit www.ghx.com and The Healthcare Hub.  

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