Global Healthcare Exchange, LLC (GHX) announced today that a Forrester Consulting review has certified that the return on investment (ROI) calculators used by GHX meet the requirements of the research and consulting firm’s acclaimed Total Economic Impact™ (TEI) methodology. Successfully used since 1996, the TEI methodology was developed to help technology buyers understand what they are getting for their money.
GHX commissioned Forrester Consulting to conduct a TEI™ Compliance Review to ensure that its ROI calculators meet the standards of the rigorous cost and benefit analysis framework. The objective was to give healthcare suppliers and providers confidence in the tools that measure the potential savings they can achieve through the use of GHX supply chain automation software.
The TEI™ Compliance Review covered the ROI models used by both suppliers and providers to calculate the potential savings that can be achieved through trading partner connectivity, transaction automation, and improved data accuracy. As part of its review, Forrester interviewed GHX customers and 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.
“Healthcare leaders are more concerned than ever about taking waste out of their processes and ensuring they have access to accurate data to make decisions that improve both the cost and quality of healthcare,” said Karen Conway, GHX executive director, Industry Relations, who is responsible for GHX Customer Value programs. “In today’s cost constrained healthcare environment, GHX customers need to know that the investments they are making in supply chain automation and visibility support their objectives to deliver better patient care in a more cost effective manner. Our sophisticated value measurement tools have met Forrester’s high standards and can help customers evaluate the savings they are currently accruing from use of GHX software, as well as where they have the best opportunity to save even more.”
In addition to improving the usability of the tools, Forrester helped GHX incorporate features that are important to financial executives, including the ability to account for risk, net present value and both the labor and monetary investments made by customers. As a result, the GHX value-based ROI models are Forrester-compliant based on three core principles; they must be objective, transparent, and easy to understand.
At the recent GHX Healthcare Supply Chain Summit (May 4-7, 2015 in Phoenix), guest speaker, Forrester consultant Dean Davison presented a session on measuring value based on the TEI methodology and the work done for GHX. Based on the evaluation and corresponding upgrades to the GHX tools, Forrester found that results from these tools are representative of what companies may achieve with GHX based on the inputs provided and any assumptions made.
The TEI Compliance Review assessed GHX’s ROI calculators and recommended changes to comply with Forrester’s Total Economic Impact methodology to confirm that the final tool met the required standards of objectivity, transparency, accuracy and ease of use.
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.