How did two of America's best hospitals add over 300 trading partners to it's EDI Purchasing system in just 90 days?

How did two of America's best hospitals add over 300 trading partners to it's EDI Purchasing system in just 90 days? Ira Keltz Peoplesoft Project Specialist / EDI Coordinator NEECOM User’s Group Conference May 12th, 2010

What is PHS? What is Partners HealthCare System?

By the numbers… • 50,000+ Employees

By the numbers… • 50,000+ Employees • 1,500+ IS Employees

By the numbers… • 50,000+ Employees • 1,500+ IS Employees • 80,000+ Active IP addresses on our network

By the numbers… • 50,000+ Employees • 1,500+ IS Employees • 80,000+ Active IP addresses on our network • 38,000+ Vendors (not including employees)

By the numbers… • 50,000+ Employees • 1,500+ IS Employees • 80,000+ Active IP addresses on our network • 38,000+ Vendors (not including employees) • In FY08 the PeopleSoft suite processed: • 9,115,601 journals • 3,175,771 vouchers • 12,863 grants • 165,000 paychecks • 1,850,000 direct deposits

What does Partners really do?

Elmer Fudd’s hospital of choice?

‘Major Player’ on the national health care scene

300+ New Vendors in 90 days ?!?

300+ New Vendors in 90 days ?!? Goal #1 Dramatically increase the volume of EDI Order processing in a matter of weeks.

300+ New Vendors in 90 days ?!? Goal #2 Save Moolah.

300+ New Vendors in 90 days ?!? Goal #3 Redesign Purchasing Department for increased efficiency and adapt to changes In business processes

300+ New Vendors in 90 days ?!? Before: • Outbound = 9 EDI PO vendors ~ 800+ PO’s/Day • Inbound = 16 EDI 810 vendors ~ 900+ Vouchers/Day Plus • Spreadsheet invoice uploads totaling~ 1200 Vouchers/Day = over 1 Million electronic documents/year

Why did we want to do it? • The ‘Boss’ said so !

Why did we want to do it? • The ‘Boss’ said so ! • More Automation = Less manual intervention

Why did we want to do it? • The ‘Boss’ said so ! • More Automation = Less manual intervention • Improved Access to PO Confirmations

Why did we want to do it? • The ‘Boss’ said so ! • More Automation = Less manual intervention • Improved Access to PO Confirmations • Industry Trending

Why did we want to do it? • The ‘Boss’ said so ! • More Automation = Less manual intervention • Improved Access to PO Confirmations • Industry Trending • One EDI map for all vendors

Why did we want to do it? • The ‘Boss’ said so ! • More Automation = Less manual intervention • Improved Access to PO Confirmations • Industry Trending • One EDI map for all vendors • 90/90 – 90% of PO Line Volume Live in 90 days

300+ New Vendors in 90 days ?!? What is GHX? GHX provides software and services to automate the healthcare supply chain and improve business processes, enabling healthcare organizations to reduce costs, become more efficient and to make better business decisions.

GHX Overview • Founded in 2000 and owned by members of the healthcare industry, GHX serves suppliers, distributors, providers and group purchasing organizations in North America and Europe. • Equity owners of GHX include: Abbott Exchange, Inc., AmerisourceBergen Corp., Baxter Healthcare Corp., B. Braun Medical Inc.; Becton, Dickinson and Company; Boston Scientific Corp., Cardinal Health, Inc., Covidien; C.R. Bard, Inc., Fisher Scientific, Inc., GE Healthcare, HCA Inc., Johnson & Johnson Health Care Systems Inc.; McKesson Corp., Medtronic USA, Inc., Owens & Minor, Inc., Premier, Inc., Siemens Medical Solutions, USA, Inc., University HealthSystem Consortium, and VHA Inc.

GHX Fast Facts • Over the past five years, GHX has saved the healthcare industry more than $1.3 billion in labor costs alone • More than 3,800 hospitals, including those representing 82 percent of the licensed beds in the United States, and approximately 350 suppliers, which sell 85 percent of the products regularly purchased by hospitals, are connected to the GHX exchange in North America • In Europe, more than 1,000 healthcare providers and 200 suppliers are trading electronically through GHX • Through a variety of connectivity solutions, GHX enables more than 7,200 healthcare providers and 2,400 suppliers in North America to conduct business electronically • Source = www.ghx.com

How are things different today? Purchasing Department Transformation Before we had approximately 38 buyers working on 4 different teams: • Capital • Commodities • Research • Medical/Surgical Supplies

How are things different today? Now we have about 30 Procurement Specs. working on 2 Teams • Tangible (Research/Med-Surgical Supplies) • Non-Tangible (Capital/Commodities) And about 5 people in our Verification Group: • Confirming orders with vendors, working price discrepancies, backorders via email/faxes, updating PO Comments, etc. • Manually training vendors to acknowledge orders via GHX We have about 8 less FTE’s placing orders since go-live as a direct result of this implementation!

What was Involved From an IT Perspective? • Install their server in our data center • Modify our 850 flat file output from PeopleSoft without breaking current PO and EDI processing. • Create a new 850 and an 810 map in our EDI Translator • Set up all of the new trading partners and DUNS/EID codes in the EDI Translator • Test, test, test

What was Involved From a Functional Perspective (MMIS) ? • Determine what vendors to implement • Validate File Layouts/Templates for new system without breaking the current EDI systems • Create multiple test orders for each new vendor • Redesign business processes for • Rush Orders • Bill Only Orders • Attn To Fields for packing slips

GHX – Integrated vs. Metatrade There are two different types of GHX vendors….. • Metatrade: • We send the vendor an EDI 850/PO via the GHX Exchange • GHX converts the EDI file to either a fax or email that is forwarded to the vendor. • Invoices are sent back to PHS via paper or spreadsheet. • Integrated : • We send the vendor an EDI 850/PO via the GHX Exchange • GHX forwards the EDI PO to the vendor • The Vendor processes the order and sends us back an electronic invoice/810 file.

GHX – Integrated vs. Metatrade

Automated PO/855 Acknowledgements via the Web Fantasy vs. Reality What we received: What we were promised:

Automated PO/855 Acknowledgements via the Web ~ 20% Acknowledgement Rate on GHX Exchange Website – Metatrade vendors need to manually acknowledge via web. Fantasy vs. Reality What we received: What we were promised:

Automated PO/855 Acknowledgements via the Web Ability to quickly add new Trading Partners. ~ 20% Acknowledgement Rate on GHX Exchange Website – Metatrade vendors need to manually acknowledge via web. Fantasy vs. Reality What we received: What we were promised:

Automated PO/855 Acknowledgements via the Web Ability to quickly add new Trading Partners. ~ 20% Acknowledgement Rate on GHX Exchange Website – Metatrade vendors need to manually acknowledge via web. No Test System ***… Really! Fantasy vs. Reality What we received: What we were promised:

Automated PO/855 Acknowledgements via the Web Ability to quickly add new Trading Partners. One standard map for all vendors ~ 20% Acknowledgement Rate on GHX Exchange Website – Metatrade vendors need to manually acknowledge via web. No Test System ***… Really! Fantasy vs. Reality What we received: What we were promised:

Automated PO/855 Acknowledgements via the Web Ability to quickly add new Trading Partners. One standard map for all vendors ~ 20% Acknowledgement Rate on GHX Exchange Website – Metatrade vendors need to manually acknowledge via web. No Test System ***… Really! We needed to build 3 custom ‘templates’ –email, fax, and a map for integrated vendors Fantasy vs. Reality What we received: What we were promised:

How did two of America's best hospitals add over 300 trading partners to it's EDI Purchasing system in just 90 days?