For our customers, this means the integrated solution from GHX and Neoforma will enable them to more quickly realize the benefits of a fully connected supply chain. We re excited to be working with Neoforma on this important step in making the vision a reality. Recent studies confirm the strategic purpose behind this collaborative effort. The Value of eCommerce in the Healthcare Supply Chain, published in June 2001, found that supply costs represent a major portion of healthcare expenditures, which constitute a significant percentage of the U.S. economy. For hospitals, the study found that reducing supply chain costs can improve profitability and, ultimately, devote more resources to patient care.
Suppliers can realize operational and sales efficiencies through effective use of e-commerce.
It also concluded that e-commerce value will be fully realized when supply chain participants reach the critical mass of acceptance, have the technology to integrate information system infrastructures, and design a common language for communication. By working together, Neoforma and GHX will undertake complementary technology development efforts and expect to create a critical mass of trading partners and speed adoption of industry standards. Both companies have led efforts in the area of industry standards, including universal product numbers and health industry numbers, which are critical to the transfer of real time data. Together, GHX and Neoforma will work to expedite adoption of open standards to accelerate the delivery of operational efficiencies and strategic planning capabilities for supply chain participants. Neoforma and GHX will continue to provide independent, open and neutral technology to all members of the healthcare supply chain.