For their work in improving operational performance and driving down costs through supply chain automation, GHX is honoring 50 healthcare provider organizations with its 2012 GHX Best 50 Customer awards. The award recipients will be honored at the 2013 GHX Healthcare Supply Chain Summit, which takes place May 20-22, 2013, in Las Vegas.
To select the Best 50, GHX looked across the landscape of more than 4,000 hospitals in the U.S. and Canada currently connected to the GHX electronic trading exchange and identified top performers on a number of key metrics, such as purchasing and invoice volume, exception rates, exchange utilization and trading partner connections. GHX then identified the 50 healthcare organizations that scored highest across all of these categories during the 2012 calendar year.
The top five organizations on the Best 50 list are, in order:
Looking at results for 2012, each of the top five organizations – the largest of which is a three hospital system with fewer than 800 beds and the smallest is a single hospital with fewer than 300 beds – saved an average of $1M by working with GHX to automate purchase orders and invoices, take control of contract spend and increase their electronic trading partner connections. Lower utilization of the GHX exchange and fewer electronic trading partners were the hallmarks of lower-performing hospitals of similar sizes. When compared with the top five organizations, lower-ranked but similarly sized hospitals saved an average of $94,000 annually. The savings analysis was conducted using the GHX 5-in-5 model, which was validated by global management consulting firm PRTM.*
“By comparing savings figures for the top performers to those at the bottom of the ranking, it becomes clear: organizations that have made supply chain automation a priority are deriving the greatest value through both dollars savings and efficiencies,”said GHX chief commercial officer Derek Smith. “These results show us the savings among hospitals with a strong commitment to automation is almost 1000% higher than savings in organizations where we see far less automation. GHX is enabling an average of $1M in savings each year for these hospitals to reinvest in their organizations, so they can continually be providing the best patient care.”
The 2012 GHX Best 50 Customers are as follows (in alphabetical order):
*Since January 2010, GHX has been tracking savings achieved by its customers as part of its “5-in-5”strategic goal of cutting $5 billion in healthcare costs over five years. The model GHX is utilizing to track its “5 in 5”goal was validated by PRTM, the global management consulting firm that developed the Supply-Chain Operations Reference-model (SCORÒ) process reference model.
Global Healthcare Exchange, LLC (GHX), a healthcare technology and services company, helps reduce the cost of doing business in healthcare by enabling better supply chain management. GHX makes it easier for hospitals, other healthcare providers and the suppliers that do business with them to drive cost and inefficiency out of their processes. Working with GHX, the healthcare organizations that make up the GHX Global Network are on track to save $5 billion by 2014. GHX is owned by organizations on both the buy and sell side of the healthcare supply chain, including some of the largest companies in the world. Find GHX on the Web, on Twitter @GHX_LLC and on Facebook @GHX and get a global perspective on healthcare industry news, issues and trends at the company’s blog, the GHX Healthcare Hub.