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CHeS Applauds Unification of Classification System of Goods and Services
A step in the right direction toward building standards that serves hospitals, patient care

Ann Arbor, Mich. (May 12, 2003) – The Coalition for Healthcare eStandards applauds the selection of the GS1 US, by the United Nations Development Programme for managing the newly revised United Nations Standard Products and Services Code (UNSPSC).

While this code has universal application to all products and services, this new standard offers critical value to the healthcare industry. Today, many of the medical suppliers – especially in the medical/surgical category – have no unified means of identification for billing, inventory and supply chain management purposes. Without a standard means of classifying products, hospitals could lose out on being able to save their institution significant dollars. As e-commerce evolves, standards such as the one established by the UNSPSC will go a long way to reducing the $11 billion lost in healthcare due to redundant purchasing and the inefficient distribution of medical supplies.

Having a standard way of identifying and grouping products offers helps further the healthcare industry’s progress in e-commerce by offering purchasers new capabilities such as:

    * Doing spend analyses, standardizing product use and conducting supplier
       rationalization initiatives
    * Benchmarking purchasing patterns against peer and competitor organizations
    * Conducting market share analysis
    * Controlling ‘rogue spending’
    * Organizing and finding items in electronic catalogs
    * Simplifying the aggregation of electronic catalogs by large buying organizations
    * Simplifying the publication of electronic catalogs by suppliers to multiple sales channels

The Coalition for Healthcare eStandards, Inc. 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 AmeriNet, Consorta, the U.S. Department of Defense’s Defense Logistics Agency, Global Healthcare Exchange, Neoforma, Novation and Premier. This group represents nearly 80 percent of the healthcare providers in the United States. Visit www.CHeStandards.org for more information about the Coalition.

Reporters’ note: For third-party perspective on the United Nations’ decision, contact:

Coalition for Healthcare eStandards
Mark McDougall, Executive Director, at 734.677.3300

or

Ken Inchausti, Premier, Inc. at 704.733.5586
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