Global Healthcare Exchange and Medibuy Sign Definitive Merger Agreement.Business Editors/Health & Medical Writers WESTMINSTER, Colo.--(BUSINESS WIRE)--Dec. 11, 2002 Merger to Create the Largest Electronic Trading  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. Exchange for Healthcare; Collaboration by Critical Mass of Providers and Suppliers Key to Reducing Costs Across Entire Supply Chain Global Healthcare Exchange, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (GHX GHX Global Healthcare Exchange GHX Ground Heat Exchanger ) and Medibuy, Inc. have signed a definitive agreement to merge their two companies. The new company will be called Global Healthcare Exchange, LLC (GHX). Owned by many of the world's largest healthcare suppliers and providers, GHX and Medibuy will combine their respective Internet-based trading exchanges to create the largest single exchange in healthcare. More than 1,400 hospitals and other healthcare facilities and 100 suppliers have already selected GHX or Medibuy as their preferred solution for purchasing healthcare products and supplies. Through this merger, the newly created exchange will provide a means for all participants in the healthcare supply chain, including provider organizations, manufacturers, group purchasing organizations A group purchasing organization is an entity that leverages the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members. Many GPOs are funded by administrative fees that are actually paid by the vendors. (GPOs) and distributors, to benefit from improved efficiencies, cost reductions, process automation, and the adoption of industry standards. By combining operations, GHX and Medibuy will eliminate the redundant costs associated with developing and deploying separate exchanges, while making it easier and less costly for current and future users to conduct e-commerce with one another. GHX will remain a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. open to all supply chain participants, with clear guiding principles and a mission designed to reduce supply chain costs for all involved. Consistent with this mission, the GHX business model is designed to generate revenues only to the level required to support the ongoing costs of the business. The board of directors of the merged company will include representation from the entire supply chain, including hospitals, GPOs, manufacturers and distributors, as well as independent representatives. Industry analysts have noted the high price tag associated with the inefficiencies plaguing the healthcare supply chain. The waste, in terms of time and money, amounts to billions of dollars annually, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. several well-respected industry studies (Andersen, "The Value of eCommerce in the Healthcare Supply Chain," 2001; Efficient Healthcare Consumer Response, 1996). While numerous organizations were formed to address this problem, this merger creates the first company and electronic trading exchange with ownership, support and participation by representatives of the entire healthcare supply chain. Through the merger, GHX and Medibuy will achieve the "critical mass of participation among all players within the healthcare supply chain," which the Andersen study cited as key to realizing the benefits of e-commerce. "This merger is exactly what the healthcare industry needs and what my organization has been waiting for," says Ed Boyer, Senior Vice President, Corporate Services Activities that combine or consolidate certain enterprise-wide needed support services, provided based on specialized knowledge, best practices, and technology to serve internal (and sometimes external) customers and business partners. of Bon Secours Health System. "With one exchange offering the combined connectivity and capabilities of GHX and Medibuy, Bon Secours Health System now has a clear choice as to the e-commerce solution that can deliver the most value to its hospitals." The combined company will maintain relationships with a significant number of both large and small suppliers, GPOs, hospitals, and other healthcare facilities regardless of their size, GPO affiliation, or whether they are for profit or not-for-profit. "Over the past several years, both GHX and Medibuy have been working on parallel tracks to deliver on the same market promise: a more efficient healthcare supply chain," said Curt M. Selquist, Company Group Chairman, Johnson & Johnson. "GHX and Medibuy each provide valuable technology solutions. Together, they have an opportunity to eliminate redundancy and improve business processes for all participants." "Medibuy's products and services have played a significant role in achievement of HCA's supply chain efficiency objectives over the past few years, and we anticipate that the combined resources of the new company will deliver even greater value," adds Jim Fitzgerald James F. Fitzgerald (born March 1926 in Janesville, Wisconsin) is an American businessman and philanthropist. He is best known as a former owner of the Milwaukee Bucks and the Golden State Warriors, both NBA teams. Fitzgerald attended Notre Dame ('47). , Senior Vice President, Contracts and Operations Support for HCA HCA, n.pr See acid, hydroxycitric. , the nation's leading provider of healthcare services. HCA hospitals have utilized the Medibuy's Reqs(TM) system to streamline the requisitioning process. Now, as a result of the merger, HCA will be able to improve the accuracy of their purchase orders by using product data, maintained and verified by suppliers, in the GHX AllSource(TM) catalog. Upon merger approval, the process of combining the two companies and migrating buyers and sellers to an enhanced trading environment will be seamless for current users. By integrating the exchanges, both healthcare providers and suppliers will be able to immediately conduct a greater percentage of their purchasing electronically. Further, with a significant number of trading partners utilizing a single exchange and product catalog for more of their purchasing, it will be easier for the healthcare industry to adopt industry standards. "Consolidation that results in opportunities for more trading partners to participate in a single supply chain solution can generate greater efficiencies," says Gartner Vice President Michael Davis Michael Davis or Mike Davis may refer to:
(2) Ensuring that two sets of data are always the same. See data synchronization. (3) Keeping time-of-day clocks in two devices set to the same time. See NTP. of data, healthcare organizations should be able to better manage their supply chain processes and begin to recognize cost efficiencies." The combined company will be headquartered in Westminster, Colo., under the leadership of GHX Chief Executive Officer Mike Mahoney Mike Mahoney (born December 5, 1972 in Des Moines, Iowa), is a Major League baseball catcher, formerly with the St. Louis Cardinals. He made his Major League debut on September 8, 2000 with the Chicago Cubs, and after two seasons in Chicago, he was released and eventually signed . The required approval of Medibuy's shareholders is anticipated before the end of the year. Financial terms were not released. About Global Healthcare Exchange Global Healthcare Exchange, LLC (GHX) has created an open and neutral Internet-based trading exchange, along with additional value-added products and services, to reduce costs and improve efficiencies for all participants in the healthcare supply chain. GHX's participants and strategic partners include suppliers and distributors; integrated delivery networks (IDNs), hospitals and ancillary healthcare facilities; group purchasing organizations and their proprietary healthcare trading exchanges; and supply chain technology companies. GHX has built the AllSource(TM) product catalog, the first in healthcare to be based on industry standards and contain normalized data maintained and verified by suppliers. The accuracy of the AllSource catalog enables GHX to successfully address many of the most common and costly problems inherent in healthcare procurement. Equity owners of GHX include Johnson & Johnson; GE Medical Systems; Baxter International Baxter International Inc. (NYSE: BAX), is a global healthcare company with 48,000 employees and 2006 sales of US$10.4 billion. Its headquarters is in Deerfield, Illinois. , Inc.; Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified pharmaceuticals and health care company. It has over 65,000 employees and operates in 130 countries. The corporate headquarters are in Abbott Park, Illinois, a neighborhood of North Chicago, Illinois. ; Medtronic, Inc.; AmerisourceBergen Corporation; B. Braun Medical Inc., Becton, Dickinson & Co.; Boston Scientific The Boston Scientific Corporation (NYSE: BSX) (abbreviated BSC), is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, Corporation; Cardinal Health <includeonly></includeonly> Cardinal Health (NYSE: CAH) is a premier, global healthcare company dedicated to making healthcare safer and more productive. Overview Headquartered in Dublin, Ohio, Cardinal Health, Inc. , Inc.; C.R. Bard, Inc.; Fisher Scientific Fisher Scientific, formally Fisher Scientific International, Inc. and colloquially Fisher was a biotechnology company that provided products and services to the global scientific research and United States clinical laboratory markets. International Inc.; Guidant Corporation; McKesson Corporation; Siemens Medical Solutions Siemens Medical Solutions (Siemens Med) is a supplier to the healthcare industry, and is headquartered in Erlangen, Germany. Its U.S. division, Siemens Medical Solutions USA, Inc., is a Delaware corporation, with headquarters in Malvern, Pennsylvania. and Tyco International For the unrelated division of Mattel, see . Tyco International Ltd. NYSE: TYC is a diversified manufacturing conglomerate incorporated in Bermuda, with United States operational headquarters in New Jersey. , Ltd. For more information, visit www.ghx.com. About Medibuy Medibuy enhances healthcare supply chain capabilities with intelligent Web-based solutions. Medibuy's product and service portfolio solves healthcare supply chain problems by integrating electronic connectivity and real-time order management with clean, complete and timely data for comprehensive analysis. Medibuy has a growing network of strategic relationships with healthcare and technology leaders to ensure its solutions meet needs of the smallest as well as largest and most complex healthcare systems in the U.S., including Premier Inc., HealthTrust Purchasing Group, HCA, Commerce One and Quovadx. For more information on Medibuy or to contact the company, please visit the company's Website at www.medibuy.com. |
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