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Health Care eStandards Group Announces Several Advances

Ann Arbor, Mich., December 21, 2000 - The Health Care eStandards Work Group, founded by the leading group purchasing organizations and e-commerce companies serving the health care market, has announced several advances in its efforts to adopt and promote uniform industry standards for supply chain transactions over the Internet. The group has taken four significant steps since its June 2000 formation:

1. A new identity: The Health Care eStandards Work Group now has a new name, the Coalition for Healthcare eStandards (CHeS), reflecting the Coalition's efforts of inclusion among all segments of the industry.

2. Management structure: Association Management Resources LLC (AMR), a professional management services firm based in Ann Arbor, Mich., now coordinates the Coalition's activities.

Services offered by AMR will include administration, website management, financial management, meeting and conference planning and membership recruitment. AMR currently provides association management services to organizations such as the College of Healthcare Information Management Executives, Health Level Seven (HL7) and Microsoft Healthcare Users Group (MS-HUG). Each member of the Coalition has contributed financially to fund the work of the management firm and ongoing work of the Coalition.

"The Coalition has brought together industry leaders that account for more than two-thirds of the health care industry's GPO buying power, to focus on a common goal of reducing costs
throughout the supply chain through the utilization of uniform e-commerce data standards," said Mark McDougall, AMR's senior vice president. "AMR is pleased to provide the headquarters and staff support for this incredibly important initiative with tremendous industry wide cost-savings opportunities," he added.

 3. Endorsement of ECCMA standard: The first major project the Coalition is tackling is the adoption of a common product categorization code for all health care products. The group investigated a number of initiatives currently underway and has decided to endorse the efforts of the Electronic Commerce Code Management Association (ECCMA), a not-for-profit organization established by the United Nations and Dun and Bradstreet in 1999. These two organizations joined their product classification coding schemes to form the Universal Standard Products and Services lassification (UNSPSC) organization for the global marketplace.

"ECCMA is in the early stages of developing codes for all healthcare product categories, so this represents a significant window of opportunity for our industry to support their work," commented Joe Pleasant, senior vice president, Premier Inc. "In the very near future, we'll be ommunicating to our business partners and colleagues encouraging their support of ECCMA's efforts in a universal infrastructure for identifying products throughout the supply chain."
 ECCMA plans to complete development of its product categorization standards by the end of January and will allow its members to provide comment on the standards before finalizing them shortly thereafter. Once the standards are finalized, the members of the Coalition have committed to adopt ECCMA's product categorization standards as the standards they use for their business processes and e-commerce platforms.

4. Focus on HINs: In addition to working with the ECCMA, the Coalition is joining forces with the Health Industry Business Communications Council (HIBCC) to refocus the industry's attention on the use of the health industry numbering system (HIN). A Coalition task force, along with HIBCC and others, will offer recommendations next spring about how the group members plan to incorporate health industry numbers into the e-commerce platforms they are using. By making HINs a core component of their e-commerce platforms, GPOs and e-commerce companies hope to reate the momentum for the rest of the industry to finally make HIBCC-assigned health industry numbers the only numbers used by suppliers and distributors to identify individual health care organizations.

 "The Coalition wants to use e-commerce as a springboard to drive industry standards, not create new standards, but dive deeper into what exists today and make those standards better and make them work," said John Burks, senior vice president of Novation, the Irving, Texas-based group purchasing organization.

About the Coalition for Healthcare eStandards

The Coalition for Healthcare eStandards is a group of leading healthcare purchasers, suppliers and distributors advocating for the adoption of uniform industry standards for supply chain transactions over the Internet. Formed in June 2000, members of the Coalition include Consorta, empactHealth.com, Healthtrust Purchasing Group, Insource Health Services, MedAssets.com, MedCenterDirect.com, medibuy.com, Neoforma, Novation, and Premier Purchasing Partners, LP. This group represents nearly 70 percent of the health care providers in the United States. Visit www.CHeStandards.org for more information about the Coalition.
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