Leverkusen and Dortmund, Germany – 2nd October, 2006
GHX LLC has acquired medicforma, creating a single company to drive greater supply chain efficiencies within the healthcare industry. By combining separate exchanges and leveraging supply chain services offered by each company, the new GHX will enable more healthcare suppliers and hospitals in Europe to conduct business electronically. Together, the two companies currently serve more than two hundred suppliers and over nine hundred active hospitals and other healthcare providers in Europe. With electronic transactions costing approximately 5 to 7 times less to process than manual orders for both suppliers and hospitals, increasing opportunities for more business to be conducted electronically can significantly reduce overall healthcare supply chain expenses. Shareholders of both organizations have approved the acquisition, which takes effect immediately. Terms of the deal were not disclosed.
GHX is owned by representatives of the entire healthcare supply chain, including hospitals, group purchasing organizations, manufacturers and distributors, and provides products and services to benefit both buyers and sellers.
Axel Kudraschow, Head of Department, University Hospital Johann Wolfgang Goethe University Frankfurt: “Both hospitals and suppliers suffer when the business is conducted in a highly manual and inefficient manner. This market consolidation will benefit all involved with either GHX or medicforma by enabling us to not only conduct business with more of our trading partners, but also by automating more of the purchasing process from order to payment.”
In addition to trading partner connectivity, the combined company provides products and services to manage e-supply chain processes, including use of electronic transaction sets to automate purchase orders, dispatch advice, invoices and help synchronize product data between buyers and sellers to minimize errors and improve reporting on purchasing trends.
Anton J. Schmidt, Managing Director Ethicon GmbH and Chairman of the Board BVMed (the German Medical Technology Association): “The newly formed single company will build upon the progress made separately by GHX and medicforma. The combined exchange and united services will more effectively meet our goals in supply chain cost reductions, as well as those of our customers and the unique European healthcare market.”
By combining operations, GHX and medicforma can eliminate redundant costs associated with deploying separate exchanges and devote more resources to building and delivering products and services that meet customers’ most pressing supply chain needs. GHX CEO Mike Mahoney states, “As a result of the acquisition, hospitals and suppliers in Europe will be able to leverage the best of what GHX offers on a global basis.” In the United States and Canada, the company has expanded its suite of services to include other aspects of the supply chain, such as data synchronization, and order and contract management. Currently, nearly 3500 hospitals, 800 non-acute care facilities and 250 suppliers are utilizing GHX services in Canada and the United States to improve supply chain efficiencies.
medicforma leader Peter Elmer will serve as executive vice president of GHX Europe, and Norbert Kruchen will lead GHX business in Germany, Austria, and Switzerland as managing director. GHX European operations will be headquartered in Germany with subsidiaries in the United Kingdom, Switzerland, Austria, Belgium and partnerships in France, Spain, and the Netherlands. GHX Europe plans to expand operations into additional European countries, including Portugal, Italy, Nordic Countries and EIRE.