| empactHealth.com is a leading provider of B2B (business to business) e-procurement solutions to the healthcare industry. The company's Web-based e-commerce solutions synchronize the business processes of healthcare buyers and suppliers--thus reducing costs on both ends of the supply chain.
The Healthcare Supply Chain
Hospitals and healthcare organizations in the United States spend $83 billion annually on healthcare supplies and equipment. Of that amount, $23 billion goes purely to processing costs - requisitioning, ordering, invoicing, tracking, and inventory management. Recent studies by industry experts have found that $15 billion of that amount could be targeted for savings via better information technologies that automate the procurement processes of buyers and sellers.* A recent article in Healthcare Forum reports, "A typical hospital spends 38% of the cost of goods on moving and handling supplies, compared to less than 10% for most industries.**" Purchase orders typically cost at least $100-150 apiece to process--for buyers and suppliers--in the current, manual world of healthcare supplies procurement.
empactHealth.com originated from its founders' constant confrontation with the inefficiencies and inadequate information within the healthcare supply chain. The lack of timely, accurate information and the inability to easily communicate creates excessive procurement overhead costs. empactHealth.com positively impacts the supply chain-related processes of buyers and suppliers by integrating empactBuy and empactSupply into their respective businesses, thus enabling efficient, cost effective e-commerce via its empactMarketplace for healthcare.
empactHealth.com President and CEO J. Edward Pearson leads a management team with significant experience in the healthcare information technology, supply chain, and cost management arenas. empactHealth.com provides cost savings for both buyers (hospitals, hospital systems, physicians groups, and other providers) and for suppliers and manufacturers of medical and non-medical supplies and equipment--
For Buyers empactBuy:
- reduces requisition and PO processing costs
- reduces "off-contract" purchases
- enables access to lower prices via better information
For Suppliers empactSupply:
- reduces order entry and invoice processing costs
- reduces customer service costs
- increases contract compliance
- increases direct sales
empactHealth.com expects to effect a minimum 5 to 1 return on investment and positive impact on the bottom line of both providers and suppliers that are part of the empactMarketplace.
The empactHealth.com Difference
empactHealth.com believes that it has a unique approach to becoming the
e-procurement leader in 2000. The company combines the following:
- An initial critical mass of buyers and sellers to jumpstart our healthcare industry-wide e-procurement marketplace, including the 200+ hospitals of Columbia/HCA on the buyer side. Additional provider and supplier relationships will be announced in the short term.
- An experienced management team with healthcare supply chain and healthcare information technology expertise.
- The leading e-commerce technology from Commerce One as the foundation technology for our healthcare e-procurement solutions that we will start implementing during the first quarter of 2000.
- An e-procurement solution that positively impacts the supply chain related processes of buyers and suppliers by integrating into their respective businesses.
- Our stance of being GPO neutral; that is, we will work with any group purchasing organizations and, as an independent company, will not be part of any single GPO. Note that empactHealth.com does not negotiate or set pricing, warehouse goods, or distribute goods.
- An inclusive marketplace that will include supplies and equipment of all types-medical and non-medical.
- An initial funding commitment of up to $40 million.