the evolution of price activation - ghx · customer eligibility 40% incorrect tier 30% customer...

© 2012 Global Healthcare Exchange, LLC. All rights reserved. GHX proprietary information. Do not copy or distribute. © 2012 Global Healthcare Exchange, LLC. All rights reserved. GHX proprietary information. Do not copy or distribute. © 2012 Global Healthcare Exchange, LLC. All rights reserved. GHX proprietary information. Do not copy or distribute. © 2012 Global Healthcare Exchange, LLC. All rights reserved. GHX proprietary information. Do not copy or distribute.

The Evolution of Price Activation

Premier Suppliers migrate from Supply Chain Advisor to GHX Collaboration Portal in Q1 2015!

© 2012 Global Healthcare Exchange, LLC. All rights reserved. GHX proprietary information. Do not copy or distribute. © 2012 Global Healthcare Exchange, LLC. All rights reserved. GHX proprietary information. Do not copy or distribute.

0%

2%

4%

6%

8%

10%

12%

14%

16%

$0

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

$25,000,000,000

$30,000,000,000

$35,000,000,000

$40,000,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

PO Volume Invoice Volume Price Error Rates

GHX Mission: Maximize Automation & Accuracy

2

2013

Exchange Statistics

$60B in PO and Invoice Automa5on

166.5M PO lines

9.25M Price Excep5ons

>50% Reduction in Pricing Errors in 10 Years

Incremental Improvements in Accuracy Requires a “Community Approach”

© 2012 Global Healthcare Exchange, LLC. All rights reserved. GHX proprietary information. Do not copy or distribute. © 2012 Global Healthcare Exchange, LLC. All rights reserved. GHX proprietary information. Do not copy or distribute. 3

PROPRIETARY & CONFIDENTIAL – © 2014 PREMIER, INC.

MFG Pricing Pain Points Sample Price Claim

0% 5%

10% 15% 20% 25% 30% 35% 40% 45%

Error Lines

Customer Eligibility 40%

Incorrect Tier 30%

Customer Identification 15%

Price Expiration 5%

Product Not on Contract 5%

UOM 5%

•  Customer identification from GPO/Distributor •  Ship-to/Sold-to affecting contract identification •  Lack of tier identification information •  Contract ownership-1 GPO vs Many •  Customer Compliance on committed volumes •  Misalignment/timing/last minute negotiations causing too many credit/rebills


5%

9%

86%

Hard copy

EDI 845

Emailed Excel spreadsheet

Source: 2011 HIDA Survey

Method of change notification:

Distributor Pain Points


Collaboration Portal Community

5

GHX Collaboration Portal brings manufacturers, distributors, providers and GPOs together in one central portal for visibility into the lifecycle of a contract

•  Contract and tier eligibility validated up-front

•  Visibility in to the life cycle of a contract (and the break points)

•  Pre-notification 845 noting membership eligibility and rebate information (sent to distributors)

•  Translation of Premier entity ID to MFG account number

•  Translation of excel spreadsheets to 845’s

•  Electronic contracts for automatic price updates into providers MMIS system


PROPRIETARY & CONFIDENTIAL – © 2014 PREMIER, INC.

"   80% of the ELOC traffic captured!

"  Begin migrating 500

suppliers in Q1 2015 "  Microsite launch in August

of 2014 (ghx.com)

The Community

J&J, GE, Kimberly Clark, Cardinal, Covidien, Carefusion, BD, Bard, Baxter, 3M, Boston Sci, Stryker, Siemens, PDI, Clorox, BVI, Abbott, Biorad, Edwards Life, Hospira, Medtronic, Gore, Ethicon, Cook, S2S Symmetry, DeRoyal, Boston Sci, BBraun, Draeger, Lakeside Manu, Kreisers, O&M….etc

the evolution of price activation - ghx · customer eligibility 40% incorrect tier 30% customer...

Documents