Value You Can Measure
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 — and delivering those savings to you — is the heart of what we do.
What drives value in the supply chain? A highly automated end to end, procure-to-pay / order-to-cash supply chain, with single-sourced accurate data and visibility into analytics that enable confident decision making.
The savings our customers deliver to healthcare using GHX technology, shown in the blue ticker to the right, are calculated for each individual customer account based on Forrester TEI-certified calculations*, aggregated to generate the total savings for participating GHX providers and suppliers.
While our customers deliver well over $1 billion in savings to healthcare annually, the savings that remain unrealized, shown to the right in the yellow ticker, are eye-opening. Are you leaving savings on the table?
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.
The unrealized savings number driven by our Forrester TEI-certified methodology calculates 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.
Transaction volume in the last 12 months
The number of 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 healthcare provider facilities ( > 4,100 hospitals)
Percentage of med-surg products represented by members
Specifically, you want to strive for a high degree of:
Savings accumulate as a greater percentage of your trading partner transactions are conducted electronically through the GHX 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.
Validating your negotiated contract pricing is actually reflected and propagated throughout your transaction workflow is essential to driving supply chain value.
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.
We annually recognize organizations that exemplify the commitment to driving supply chain value. These organizations are all-in with automation, best practices and the continuous tracking of KPI metrics to keep improving.
View the GHX awards program to see which organizations lead the industry and how they’re achieving success.
* 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.
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: