e-health supply chain reform: the australian …...australia at a glance • 22.8 million people...

National E-Health Transition Authority

www.nehta.gov.au

1

E-Health Supply Chain Reform: The Australian Experience

GS1 Ireland Healthcare Conference 2012

26 April 2012

Dublin

Mark Brommeyer

Manager Supply Chain

2 National E-Health Transition Authority

www.nehta.gov.au

1. Australian Healthcare and NEHTA – The Who

2. National E-Health Agenda – The What

3. Supply Chain Reform – The Why

4. NPC and eProcurement Status – The How

5. Lessons Learned – The Wherewithal

Agenda


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Australia at a glance

• 22.8 million people currently live in Australia

• Life expectancy continues to increase, so an Australian male born

today can expect to live to 79.2 years and a female to 83.7 years

• Australians aged 80 years or over is about 800,000 (3.7% of the

total population); nearly 2/3 are female

• 64% of people live in capital cities, numbering 14 million in June

2009

• Expenditure on health was 9.1% of GDP in 2007–08, amounting to

over $103 billion or $4,874 per person (just $10 billion in 1980)

AUD$130 billion in 2010-11 (9.8% GDP) • 70% is publically funded & 30% privately funded

• 8 State & Territory Governments (State Health Departments) and

Federal Department of Health and Ageing

Australia at a Glance

STATE 2011

ACT 356,900

NSW 7,317,500

NT 231,200

QLD 4,599,400

SA 1,659,800

TAS 511,000

VIC 5,640,900

WA 2,366,900

Total 22+M


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Australian Healthcare Funding


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NEHTA’s Purpose

Lead the uptake of e-health

systems of national significance;

and coordinate the progression

and accelerate the adoption of e-

health by delivering urgently

needed integration infrastructure

and standards for health

information.

Establishing the foundations for eHealth


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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


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Agenda


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The NEHTA Supply Chain Work

Program

eProcurement

National Product Catalogue


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Agenda


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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

Poor supply chain costs the health system money: • Wrong product ordered/delivered

• Wrong quantity/poor forecasting and inventory management

• Reduction of redundant purchasing tasks, inefficient work practices and

greater accuracy through automation

Supply Chain Reform needed because:


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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


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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


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Agenda


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The National Product Catalogue

• The National Product Catalogue (NPC) is a way of suppliers

providing 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:


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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


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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

235,000+ items, 370+ suppliers

All jurisdictions accessing data

Clean, standardised data in all systems


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eProcurement solution

eProcurement

Hospital Ward

ManufacturersCentral Purchasing

Wholesalers

Distributors

Pharmacy

PURCHASE ORDER

BU

YE

RS

SU

PP

LIE

RS

ORDER CHANGE

DESPATCH ADVICE (ASN)

INVOICE

ORDER REPONSE

NPC

REMITTANCE ADVICE

NPC is key to standard

data and a shared

identifier across all

parties – GTIN


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NPC – Public Health Organisation

Usage

• VIC – understanding use patterns; not having to ask suppliers what

the State has bought from them

• NSW – data maintenance work effort/invoices on hold and delayed

payment time (> 90 days and no discount)

• WA – want to get to eProcurement (too much paper); can’t do this

without accurate data

• SA – warehousing and dimensions; process change for overall

supply chain reform

• TAS/ACT/QLD – data maintenance work effort and data accuracy;

scan the bar code at the pharmacy, but have no record in internal

systems

• NT – standardising a single catalogue (multiple product identifiers)

and moving to eProcurement in next phase


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NPC: Private Health Organisation

Drivers

• Prosthesis rebate codes linkage – reimbursement from the insurers

(also now identified as an issue for public hospitals as well) = 1

hour/hospital/day on phone

• Reduce effort and cost in collection and maintenance of catalogue

information (not just health data – also food service, medical grade

PCs and hand held devices + hotel services sectors)

• Increase savings through removal of inefficiencies, e.g. payment

variations and ordering errors due to inaccurate and/or insufficient

data

• Accurate Data to reduce Supply Chain costs and maximise

efficiency in the automation of Purchase to Pay processes using

B2B electronic procurement messaging


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Agenda


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Lessons Learned

1. National Data Set (NPC) for medicines, medical devices and

consumables – considering non-medical items

2. Data validation processes: GS1net Ready

3. Governance – Supply Chain Reference Group (SCRG) and

Healthcare User Groups (HUG)

4. Buy-in from public and private healthcare organisations – buyers

using common data

5. Supplier engagement/tenders and for off-contract purchasing

6. eProcurement National Messaging Implementation Guidelines

7. Buyers and suppliers exchange the same eProcurement messaging

content, i.e. exchanging common data

8. Alignment with Australian Standard for Heath Supply Chain

Messaging (AS 5023)

Why does is it work:


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Lessons Learned

1. Cost – Not for Profit global member organisation; GS1 best solution

2. Conformance – GS1 global standards for supply chain continuum

3. Capability – NPC Ready program that health could use

4. Consistency – alignment with other verticals, e.g. FMCG (grocery)

5. Connectedness – globally interoperable data pool

6. Collaboration – strategic partner for supply chain reform

7. Customer driven – standards are driven by member needs

Why GS1net:


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Lessons Learned – The ‘P’s and

‘C’s

1. Policy Leadership – legislative, executive and senior management

‘walking the talk’, including Chief Procurement Officers, is essential

2. Product Identification – unique and unambiguous identification is

critical, i.e. provide a single NPC for the procurement of medicines,

medical devices and other healthcare products

3. Process Alignment – support business process improvement and

standardised tender processes for tender submission, utilising data

loaded onto a National Product Catalogue across organisations

4. Communicate – communicate – communicate

5. Common approach – national solution

6. Collaborative benefits measurement – start early


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Lessons Learned


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Agenda


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Contact and Questions

Supply Chain

www.nehtasupplychain.com.au

PCEHR

www.yourhealth.gov.au

The latest in eHealth

www.ehealthinfo.gov.au

NEHTA specific information

www.nehta.gov.au

Mark Brommeyer

Manager Supply Chain

e-mail: [email protected]

http://www.nehtasupplychain.com.au/

http://www.yourhealth.gov.au/

http://www.ehealthinfo.gov.au/

http://www.nehta.gov.au/

mailto:[email protected]

e-health supply chain reform: the australian …...australia at a glance • 22.8 million people...

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