National E-Health Transition Authority
www.nehta.gov.au
0
Australia’s National
Product Catalogue and
eProcurement Initiati...
1 National E-Health Transition Authority
www.nehta.gov.au
1. Benefits of automating manual processing
2. Importance of ePr...
2 National E-Health Transition Authority
www.nehta.gov.au
NEHTA’s Structure
The National E-Health Transition Authority (NE...
3 National E-Health Transition Authority
www.nehta.gov.au
eHealth Supply Chain Reform
1. Lack of standardised product iden...
4 National E-Health Transition Authority
www.nehta.gov.au
eHealth Supply Chain Reform
70yr old woman goes to hospital for ...
5 National E-Health Transition Authority
www.nehta.gov.au
eHealth Supply Chain Reform
eHealth Supply Chain Reform can deli...
6 National E-Health Transition Authority
www.nehta.gov.au
1. Benefits of automating manual processing
2. Importance of ePr...
7 National E-Health Transition Authority
www.nehta.gov.au
Benefits of automating processes
Automating processes enables su...
Benefits to date
 Helps maintain Cook’s position as an
innovative market leader.
 Real-time access of Cook’s product
cat...
Benefits cont’d
 85% + of Accounts Receivable delays due to pricing
inaccuracy – EDI and NPC mitigate delayed payment
 P...
Return on EDI Investment
(ROI)
Cook Medical
Shanghai warehouse
ROI (example of 1 order with 10 line
items) Manual EDI
Faxe...
11 National E-Health Transition Authority
www.nehta.gov.au
1. Benefits of automating manual processing
2. Importance of eP...
12 National E-Health Transition Authority
www.nehta.gov.au
The National Product Catalogue
• The National Product Catalogue...
13 National E-Health Transition Authority
www.nehta.gov.au
NPC – Data Synchronisation
Health
Department
Supplier 2
Importe...
14 National E-Health Transition Authority
www.nehta.gov.au
NPC – Data Usage
Clinical Outcomes Focus
 Clinical Terminologi...
15 National E-Health Transition Authority
www.nehta.gov.au
NPC – Accurate Data Benefits
16 National E-Health Transition Authority
www.nehta.gov.au
eProcurement Solution
eProcurement
Hospital Ward
Manufacturers
...
17 National E-Health Transition Authority
www.nehta.gov.au
1. Benefits of automating manual processing
2. Importance of eP...
18
National E-Health Transition Authority
www.nehta.gov.au
Launched 6 March 2014
“The report identifies the
benefits to al...
19
National E-Health Transition Authority
www.nehta.gov.au
Background
1. Commissioned by industry under the auspices
of th...
20
National E-Health Transition Authority
www.nehta.gov.au
The Participants
4 buyers and 3 suppliers
• Each buyer represen...
21
National E-Health Transition Authority
www.nehta.gov.au
5 scenarios - $30 million AUD
But more were identified:
1. Time...
22
National E-Health Transition Authority
www.nehta.gov.au
What is the potential?
0 5 10 15
NPC Upload
Proprietary Spreads...
23 National E-Health Transition Authority
www.nehta.gov.au
1. Benefits of automating manual processing
2. Importance of eP...
24 National E-Health Transition Authority
www.nehta.gov.au
Understanding eProcurement
• The data structure is defined by e...
25 National E-Health Transition Authority
www.nehta.gov.au
Why implement eProcurement?
• Interoperability
• Increased tran...
26 National E-Health Transition Authority
www.nehta.gov.au
eProcurement and NPC
eProcurement
NPC is key to standard
data a...
27 National E-Health Transition Authority
www.nehta.gov.au
NEHTA eProcurement Solution
• Six messages selected to cater
to...
eProcurement – What is a MIG ?
Details in a MIG include:
• Organisational set-up
• Business process/rules and messages use...
Current MIGs available
• State based MIGs have been
developed for some jurisdictions
• ACT
• WA
• NSW
• SA
• VIC
• MIGs ar...
30 National E-Health Transition Authority
www.nehta.gov.au
An example eProcurement message
These messages are not designed...
31 National E-Health Transition Authority
www.nehta.gov.au
1. Benefits of automating manual processing
2. Importance of eP...
32 National E-Health Transition Authority
www.nehta.gov.au
1. People
2. Process
3. Policy
Increase Adoption: 3 Key Areas
33 National E-Health Transition Authority
www.nehta.gov.au
1. Communication: Buyer  Supplier
2. Collaboration with a pur...
34 National E-Health Transition Authority
www.nehta.gov.au
1. Alignment for value
2. Governance for risk
3. Engagement, e....
35 National E-Health Transition Authority
www.nehta.gov.au
Policy
1. Common tendering clauses
2. For innovation, value and...
36
National E-Health Transition Authority
www.nehta.gov.au
Conclusion
1. Lack of standardised product identification =
GTI...
37 National E-Health Transition Authority
www.nehta.gov.au
1. Benefits of automating manual processing
2. Importance of eP...
38 National E-Health Transition Authority
www.nehta.gov.au
Supply Chain Nirvana
1 2
3
4
5
Patient
Identification
Medicatio...
39 National E-Health Transition Authority
www.nehta.gov.au
Contact and Questions
Supply Chain
www.nehta.gov.au/our-work/su...
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Mark Brommeyer - National E-Health Transition Authority (NEHTA) - The National e-Health Transition Authority’s (NeHTA’s) National Product Catalogue and e-Commerce Initiatives and Resultant Standardisation - eProcurement

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Mark Brommeyer delivered the presentation at the 2014 National Hospital Procurement Conference.

The 2014 National Hospital Procurement Conference explored a number of cost-saving measures in the hospital procurement ecosystem. Highlights included sessions on improving efficiency, savings and patient safety within Australian Hospitals.

For more information about the event, please visit: http://bit.ly/hosprocurement14

Published in: Leadership & Management
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Mark Brommeyer - National E-Health Transition Authority (NEHTA) - The National e-Health Transition Authority’s (NeHTA’s) National Product Catalogue and e-Commerce Initiatives and Resultant Standardisation - eProcurement

  1. 1. National E-Health Transition Authority www.nehta.gov.au 0 Australia’s National Product Catalogue and eProcurement Initiatives – Standardisation 4th National Hospital Procurement Conference Sydney, 24th July 2014 Mark Brommeyer Manager Supply Chain
  2. 2. 1 National E-Health Transition Authority www.nehta.gov.au 1. Benefits of automating manual processing 2. Importance of eProcurement being based on accurate and complete product data – the NPC 3. Creating a standards-based solution 4. Message Implementation Guideline (MIG) – business/technical requirements and processes 5. How can the adoption of E-Health Supply Chain Reform be accelerated? Agenda
  3. 3. 2 National E-Health Transition Authority www.nehta.gov.au NEHTA’s Structure The National E-Health Transition Authority (NEHTA) is a company established by the Australian, State and Territory governments in 2005 to develop better ways of electronically collecting and securely exchanging health information. Independent company – state and federally government funded, including: • Board of Directors (CEOs of Health Jurisdictions, an Independent Director and an Independent Chair) • Board Committees • The Chief Executive Officer • The Company Secretary • The NEHTA Organisation
  4. 4. 3 National E-Health Transition Authority www.nehta.gov.au eHealth Supply Chain Reform 1. Lack of standardised product identification 2. Lack of standardised location identification 3. Multiple product data catalogues being maintained per hospital, per hospital network and per state Supply Chain Reform needed because: Poor supply chain costs the health system money: • Wrong product ordered/delivered • Wrong quantity/poor forecasting and inventory management Automating processes enables supplier and buyer organisations to: • Reduce redundant purchasing tasks • Improve inefficient work practices • Achieve greater accuracy in procurement and tendering
  5. 5. 4 National E-Health Transition Authority www.nehta.gov.au eHealth Supply Chain Reform 70yr old woman goes to hospital for a hip replacement… Wrong prosthesis turns up… No surgery = 1. Cost to patient – pain, increased iatrogenesis, stress, time, financial 2. Cost to health system – theatre, staff, bed, medications, other patients Information is the enemy of disease
  6. 6. 5 National E-Health Transition Authority www.nehta.gov.au eHealth Supply Chain Reform eHealth Supply Chain Reform can deliver:  The right products, at  The right price, for  The right person, in  The right location, at  The right time Accurate Data is Critical
  7. 7. 6 National E-Health Transition Authority www.nehta.gov.au 1. Benefits of automating manual processing 2. Importance of eProcurement being based on accurate and complete product data – the NPC 3. Creating a standards-based solution 4. Message Implementation Guideline (MIG) – business/technical requirements and processes 5. How can the adoption of E-Health Supply Chain Reform be accelerated? Agenda
  8. 8. 7 National E-Health Transition Authority www.nehta.gov.au Benefits of automating processes Automating processes enables supplier and buyer organisations to: • Reduce redundant purchasing tasks • Improve inefficient work practices • Achieve greater accuracy in procurement and tendering • Increase interoperability between suppliers and purchasers • Increase transactional accuracy • Reduce order errors • Improve compliance • Improve payment times • Have more timely information for improved purchasing and inventory management.
  9. 9. Benefits to date  Helps maintain Cook’s position as an innovative market leader.  Real-time access of Cook’s product catalogue for its customers via NPC.  Customer service team on both sides work with lower error rates, thereby providing efficiency and savings in supply- chain.  Customers can choose to receive electronic dispatch notices, Invoices, Credit notes etc.  2 FTEs saved in principle – no actual loss as staff redeployed to other tasks  System caters for sale or return, consignment product, and procedure based ordering Cook Medical Shanghai warehouse • 950 active customers • 188 full EDI – app. 20% and growing
  10. 10. Benefits cont’d  85% + of Accounts Receivable delays due to pricing inaccuracy – EDI and NPC mitigate delayed payment  Past practice of sending CD’s with pricing to over 800 customers, when less than 5 customers could upload data – now all customers can access data accurate to 3am same day, 365 days per year  Time spent by Customer Service and Accounts correcting errors at either SC end can leave a negative impression – EDI negating a negative!  Works to maximise:  Right product  Right time  Right place  Right patient!!!  Projects involve cross-functional participation and promote team player
  11. 11. Return on EDI Investment (ROI) Cook Medical Shanghai warehouse ROI (example of 1 order with 10 line items) Manual EDI Faxed / email order comes in 2 mins EDI auto Customer service picks up and passes to right staff 2 mins no pickup required Purchase Order (PO) is checked and entered in internal ordering system for correctness - product / price 5 mins PO processed with only the line item with errors rejected or substituted & processed if Error in PO, call up hospital and fix error 30 to 45 mins auto NEW approved PO is re-faxed, CSR picks up and processes PO 6 mins auto Total time Up to 1 hour / order of 10 line items 3 minutes Cost approximately $5.50 per order of 10 line items .50c @ 1000 orders per day savings add up $5,500 $500 @ 25,000 order per month savings really add up $137,500 $12,500
  12. 12. 11 National E-Health Transition Authority www.nehta.gov.au 1. Benefits of automating manual processing 2. Importance of eProcurement being based on accurate and complete product data – the NPC 3. Creating a standards-based solution 4. Message Implementation Guideline (MIG) – business/technical requirements and processes 5. How can the adoption of E-Health Supply Chain Reform be accelerated? Agenda
  13. 13. 12 National E-Health Transition Authority www.nehta.gov.au The National Product Catalogue • The National Product Catalogue (NPC) is a way for suppliers to provide standardised and accurate product and price data electronically to the Australian health departments and private hospital providers. • The NPC provides suppliers with a single mechanism to communicate structured catalogue data to many health customers – and the health customers a single way to access this data from multiple suppliers. • The NPC enables synchronisation of product and pricing data for accuracy in electronic procurement. The Solution:
  14. 14. 13 National E-Health Transition Authority www.nehta.gov.au NPC – Data Synchronisation Health Department Supplier 2 Importer Supplier 3 Distributor Supplier 4 Wholesaler Supplier 1 Manufacturer Health Department Hospital Product and Price Synchronisation Supplier 5 Hospital Hospital GS1Net NPC Other Data Recipients Retail Pharmacy, Private Hospitals Product data is common to all - Price data is customer specific
  15. 15. 14 National E-Health Transition Authority www.nehta.gov.au NPC – Data Usage Clinical Outcomes Focus  Clinical Terminologies – Australian Medicines Terminology (AMT)  Product tracking and recall  Bedside scanning (incl. batch, exp., serialisation, etc) => patient record  TGA approval of pharmaceuticals Private Sector  Private Hospitals  Community Pharmacies / pharmacy software providers  Accurate reference of Prosthesis Rebate Code for billing benefits National Product Catalogue  327,000+ items, 450 suppliers  All jurisdictions accessing data  Clean, standardised data in all systems NEHTA anticipates that full implementation of the NPC will save the public healthcare sector at least $AUD200 million per annum by ensuring accurate, valid and up-to-date product data, and improved communications and supply chain operations (Deloittes, 2004. Recommendations for National IM & ICT Enablers in the Health Sector Supply Chain report).
  16. 16. 15 National E-Health Transition Authority www.nehta.gov.au NPC – Accurate Data Benefits
  17. 17. 16 National E-Health Transition Authority www.nehta.gov.au eProcurement Solution eProcurement Hospital Ward Manufacturers Central Purchasing Wholesalers Distributors Pharmacy PURCHASE ORDER BUYERS SUPPLIERS ORDER CHANGE DESPATCH ADVICE (ASN) INVOICE ORDER REPONSE NPC REMITTANCE ADVICE NPC is key to standard data and a shared identifier across all parties – GS1 Product Number (GTIN)
  18. 18. 17 National E-Health Transition Authority www.nehta.gov.au 1. Benefits of automating manual processing 2. Importance of eProcurement being based on accurate and complete product data – the NPC 3. Creating a standards-based solution 4. Message Implementation Guideline (MIG) – business/technical requirements and processes 5. How can the adoption of E-Health Supply Chain Reform be accelerated? Agenda
  19. 19. 18 National E-Health Transition Authority www.nehta.gov.au Launched 6 March 2014 “The report identifies the benefits to all parts of the supply chain from bringing healthcare product data quality up to best practice.”
  20. 20. 19 National E-Health Transition Authority www.nehta.gov.au Background 1. Commissioned by industry under the auspices of the National E-Health Transition Authority (NEHTA) Supply Chain Reform Group (NEHTA SCRG) 2. Aim is to focus industry attention on the need for continual data quality improvement in healthcare 3. Confirmation of anecdotal feedback that inaccurate product data has a direct impact on healthcare efficiency and costs
  21. 21. 20 National E-Health Transition Authority www.nehta.gov.au The Participants 4 buyers and 3 suppliers • Each buyer represents up to 20% of their supplier’s total sales volumes Integrated - the supplier automatically pushes electronic messages containing changed data or new products to the NPC and the buyer receives automatic updates (via electronic messaging) of this changed or new data
  22. 22. 21 National E-Health Transition Authority www.nehta.gov.au 5 scenarios - $30 million AUD But more were identified: 1. Time and effort required to address the initial error and arrange the urgent delivery 2. Reverse logistics in the case of oversupply 3. Rejection of prostheses claims due to inaccuracies, coupled with the cost of the supplier companies providing on-site staff to verify claim information 4. Lost revenue from inaccurate linking of data to patient for non-joint related prostheses claims 5. Stock being unavailable for patient care and associated costs of delayed or cancelled procedures
  23. 23. 22 National E-Health Transition Authority www.nehta.gov.au What is the potential? 0 5 10 15 NPC Upload Proprietary Spreadsheet Vendor Form (inc email) Communicating product data work effort (mins)
  24. 24. 23 National E-Health Transition Authority www.nehta.gov.au 1. Benefits of automating manual processing 2. Importance of eProcurement being based on accurate and complete product data – the NPC 3. Creating a standards-based solution 4. Message Implementation Guideline (MIG) – business/technical requirements and processes 5. How can the adoption of E-Health Supply Chain Reform be accelerated? Agenda
  25. 25. 24 National E-Health Transition Authority www.nehta.gov.au Understanding eProcurement • The data structure is defined by eProcurement messaging standards • The message will be sent in an automated manner electronically between computer applications of trading partners eProcurement is the transfer of structured procurement data, from one computer to another, by electronic means.” Business Document Electronic means
  26. 26. 25 National E-Health Transition Authority www.nehta.gov.au Why implement eProcurement? • Interoperability • Increased transactional accuracy • Reduced order errors • Improved compliance • Improved payment times • Timely information for improved purchasing and inventory management For both suppliers and buyers a range of benefits result from eProcurement implementation
  27. 27. 26 National E-Health Transition Authority www.nehta.gov.au eProcurement and NPC eProcurement NPC is key to standard data and a shared identifier across all parties – GS1 Product Number (GTIN)
  28. 28. 27 National E-Health Transition Authority www.nehta.gov.au NEHTA eProcurement Solution • Six messages selected to cater to the needs of the supply chain • Data sets used in these messages are based on the recommendations made in the AS 5023 2003 guidelines Multi Shipment Order (Purchase Order, Purchase Order Change) Order Response Despatch Advice Invoice Remittance Advice NEHTA have chosen to use GS1 XML as the eMessaging standard For NEHTA technical specifications (Message Implementation Guidelines) www.nehta.gov.au Click ‘Our Work’  ‘Supply Chain’
  29. 29. eProcurement – What is a MIG ? Details in a MIG include: • Organisational set-up • Business process/rules and messages used • Technical, and on-boarding requirements • Supporting EDI files with business scenarios • Details on open connectivity for the B2B marketplace The Message Implementation Guideline (MIG) is A document containing information about the way electronic procurement is implemented within an environment. This document is provided by buyer(s) to the marketplace to develop eProcurement capability to trade
  30. 30. Current MIGs available • State based MIGs have been developed for some jurisdictions • ACT • WA • NSW • SA • VIC • MIGs are planned for others • The National MIG is the equivalent of the NPC data set – a single document containing all requirements for all jurisdictions • The National MIG was released in January 2013 The ultimate goal: A national MIG
  31. 31. 30 National E-Health Transition Authority www.nehta.gov.au An example eProcurement message These messages are not designed to be human readable!
  32. 32. 31 National E-Health Transition Authority www.nehta.gov.au 1. Benefits of automating manual processing 2. Importance of eProcurement being based on accurate and complete product data – the NPC 3. Creating a standards-based solution 4. Message Implementation Guideline (MIG) – business/technical requirements and processes 5. How can the adoption of E-Health Supply Chain Reform be accelerated? Agenda
  33. 33. 32 National E-Health Transition Authority www.nehta.gov.au 1. People 2. Process 3. Policy Increase Adoption: 3 Key Areas
  34. 34. 33 National E-Health Transition Authority www.nehta.gov.au 1. Communication: Buyer  Supplier 2. Collaboration with a purpose 3. Conversations solve problems People
  35. 35. 34 National E-Health Transition Authority www.nehta.gov.au 1. Alignment for value 2. Governance for risk 3. Engagement, e.g. Buyer Briefing Sessions Process
  36. 36. 35 National E-Health Transition Authority www.nehta.gov.au Policy 1. Common tendering clauses 2. For innovation, value and benefits 3. Buy-local weighting, PPPs and compliance, e.g. sustainable procurement, e.g. carbon
  37. 37. 36 National E-Health Transition Authority www.nehta.gov.au Conclusion 1. Lack of standardised product identification = GTIN 2. Lack of standardised location identification = GLN 3. Multiple product data catalogues being maintained per hospital, per hospital network and per state = NPC 4. Inaccurate and inefficient procurement practice = eProcurement 5. Inefficient Supply Chain processes = Standards
  38. 38. 37 National E-Health Transition Authority www.nehta.gov.au 1. Benefits of automating manual processing 2. Importance of eProcurement being based on accurate and complete product data – the NPC 3. Creating a standards-based solution 4. Message Implementation Guideline (MIG) – business/technical requirements and processes 5. How can the adoption of E-Health Supply Chain Reform be accelerated? Summary
  39. 39. 38 National E-Health Transition Authority www.nehta.gov.au Supply Chain Nirvana 1 2 3 4 5 Patient Identification Medication Identification Instrument Identification Prosthetic Identification EMR Integration
  40. 40. 39 National E-Health Transition Authority www.nehta.gov.au Contact and Questions Supply Chain www.nehta.gov.au/our-work/supply-chain NEHTA specific information www.nehta.gov.au The latest in eHealth in Australia www.ehealth.gov.au Mark Brommeyer Manager Supply Chain e-mail: mark.brommeyer@nehta.gov.au
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