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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
3 National E-Health Transition Authority
www.nehta.gov.au
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
5 National E-Health Transition Authority
www.nehta.gov.au
Australian Healthcare Funding
6 National E-Health Transition Authority
www.nehta.gov.au
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
7 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
8 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
9 National E-Health Transition Authority
www.nehta.gov.au
The NEHTA Supply Chain Work
Program
eProcurement
National Product Catalogue
10 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
11 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
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:
12 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
13 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
14 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
15 National E-Health Transition Authority
www.nehta.gov.au
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:
16 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
17 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
235,000+ items, 370+ suppliers
All jurisdictions accessing data
Clean, standardised data in all systems
18 National E-Health Transition Authority
www.nehta.gov.au
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
19 National E-Health Transition Authority
www.nehta.gov.au
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
20 National E-Health Transition Authority
www.nehta.gov.au
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
21 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
22 National E-Health Transition Authority
www.nehta.gov.au
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:
23 National E-Health Transition Authority
www.nehta.gov.au
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:
24 National E-Health Transition Authority
www.nehta.gov.au
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
25 National E-Health Transition Authority
www.nehta.gov.au
Lessons Learned
26 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
27 National E-Health Transition Authority
www.nehta.gov.au
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]