Ottawa hospital adopts online procurement suite

Solution expected to help save $32 million over five years

April 29, 2011
by Purchasing b2b staff

TORONTO: Ottawa’s Montfort Hospital has begun using the GHX Procurement Suite, said Champlain Health Supply Services (CHSS), which provides supply chain services to the hospital. CHSS said it’s the first shared services organization (SSO) in Canada to have one of its hospitals begin using the suite. CHSS estimates the web-based solution for managing non-file and off-contract procurement, along with improvements to its business processes, can help it see $32 million in cumulative supply chain cost savings over the next five years.

“We have taken a group of hospitals and put into place the framework and building blocks to help enable them to fully control and drive spend,” said John Martin, director of hospital services, Queensway Carleton Hospital, and regional lead for integrated supply services for CHSS. “The addition of Procurement Suite is particularly important because it provides a consistent and standardized process for CHSS hospitals to increase operational efficiency and improve financial and clinical outcomes.”

CHSS provides supply chain services to hospitals in the Greater Ottawa Area, centralizing the efforts of 12 hospitals with disparate IT systems. The organization will use Procurement Suite to manage spending outside its member hospitals’ materials management departments. Procurement Suite offers a catalogue search, order management and approval workflow platform that allows hospitals to source approved on-contract products and monitor requisition status in real time.

CHSS said it’s working with GHX to connect hospitals with combined revenues of $1.7 billion to 90 percent of the trading partners from which they purchase medical-surgical supplies and with HealthPRO, their group purchasing organization. The hospitals’ data, contract management and requisitioning processes were automated and their business processes optimized in concert with GHX Business Solutions.

“CHSS is an excellent example of a leading practice in supply chain management and provides a blueprint for other SSOs with multiple disparate systems to capture and manage off-contract purchasing,” said Nils Clausen, general manager, GHX Canada. “Its member hospitals will be able to leverage continuously updated, accurate contract data to create visibility to procurement occurring outside of their materials management systems and controls. That, in turn, will allow them to cut costs while still providing high-quality patient care.”