Independent Economic Impact Study Reveals 367% ROI for GHX Healthcare Exchange Platform

Research study finds strong economic results for both provider and supplier trading partners automating demand-to-pay and order-to-cash cycles using GHX solutions
Louisville, CO — Monday, August 29, 2016

Global Healthcare Exchange, LLC (GHX), a leader in cloud-based healthcare supply chain management solutions, today announced the results of a Forrester Consulting Total Economic ImpactTM (TEI) study of the GHX Exchange platform for healthcare providers and suppliers. According to the study, the GHX Exchange platform contributed a combined 367 percent return on investment (ROI) between the interviewed supplier and provider solutions. The full study and healthcare supplier and healthcare provider infographics are available on the GHX TEI web page.

GHX commissioned Forrester Consulting to conduct the TEI study and examine the potential ROI that enterprises may realize by deploying the GHX Exchange and related products and services to help automate the demand-to-pay and order-to-cash cycle. The study of two GHX healthcare trading partners - a $3 billion global healthcare supplier and 800-bed provider with roughly $1.5 billion annual spend - showed how a centralized solution that meets the needs of modern healthcare organizations can create value for both sides of the relationship. Both trading partners have used multiple GHX solutions over several years to automate supply chain management.

"These results are very encouraging for healthcare. We knew that the GHX Exchange platform was delivering on our mission of efficiency, automation and accuracy in healthcare; now we know just how much value is being achieved by customers who are fully committed to maximizing their use of GHX products and services." said Bruce Johnson, president and CEO, GHX. "Our commitment is to deliver solutions that benefit both providers and suppliers, large and small, in a manner that gives them flexibility to choose to do business among the multitude of organizations working with GHX. Forrester’s TEI value calculations affirms for us that our approach is working."

The supplier analysis showed benefits of approximately $7.8 million per year versus annual costs of roughly $1.9 million, adding up to a three-year net present value (NPV) of $15,234,547. With GHX, write-offs due to discrepant and erroneous manual orders were reduced by 2 percent, amounting to a savings of $7,828,335 with a three-year risk-adjusted ROI of 302 percent. The supplier also experienced benefits in order acceptance efficiency, order accuracy, order exception resolution, improved cash flow from quicker paying receivables, and avoided costs of disparate EDI connections.

The study also revealed that the 800-bed healthcare provider increased its electronic vendor base with the GHX Exchange from less than a dozen connected suppliers to over 3,000 and is now 98 percent automated in its order fulfillment process, up from 10 percent in its previous state. Most importantly, the GHX platform gave the organization accurate visibility into the entire procurement cycle, enabling it to decrease the total cost of goods. The TEI analysis noted annual average benefits of $2.8 million versus total annual costs of approximately $225,000, adding up to a NPV of $6,647,951 with a three-year risk-adjusted ROI of 732 percent.

In 2015, GHX commissioned Forrester Consulting to conduct a TEI Compliance Review of the GHX ROI calculators to ensure they meet the standards of Forrester’s rigorous cost and benefit analysis framework. The Compliance Review covered the ROI models used by both suppliers and providers to calculate the potential savings that can be achieved through trading partner connectivity, transaction automation, and improved data accuracy.

About GHX

Global Healthcare Exchange, LLC (GHX) drives costs out of healthcare with cloud-based supply chain management technology and services in order to help enable better patient care and savings by maximizing automation, efficiency, and accuracy of business processes. GHX offers healthcare providers and suppliers an open and neutral electronic trading exchange that delivers procurement and accounts payable automation, contract and inventory management, vendor credentialing and management, business intelligence, and other supply chain-related tools and services. For more information, visit and The Healthcare Hub.