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CHeS News & Updates is a monthly broadcast message sent directly to CHeS member firms from the office of the Coalition for Healthcare eStandards. Compiled by Peggy Brody, Director of Communications, this information is intended to keep CHeS member representatives current on CHeS and CHeS-related events. Please share this information with your colleagues who are working to promote and implement industry-wide adoption of health care supply chain standards. Should you have any questions or comments, feel free to contact me at any time.
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Peggy Brody, Director of Communications
Coalition for Healthcare eStandards
3300 Washtenaw Ave., Suite 225
Ann Arbor, Michigan  48104
Phone: 734-677-3300
Fax: 734-677-6622
GLN  (global location number)  ______________________________________
About GLN:

Customer identification by Global Location Number (GLN) is a way for health care providers and their suppliers to identify their organizations across the supply chain.  The GLN is a physical number that is assigned to each entity within an organization.

Just as individuals use a unique Social Security Number when doing business with the US Government, there is now a proven and reliable alternative to proprietary numbers: the GLN, which provides a unique and commonly available number to each location where suppliers ship products.

By using the GLN, suppliers can obtain accurate information about healthcare provider locations from a central database, so they have everything they need to know in order to properly ship, deliver, and bill products. Both customers and suppliers may be assigned globally unique GLNs that improve accuracy and speed within the supply chain.
GLN Webinars Now Available

This web seminar introduces GLNs, explains how they can be used to identify physical locations, functional entities, and legal entities in electronic commerce.

The seminar will cover:

• How GLNs are used  
• How GLNs are used in the GDSN  
• The benefits of using GLNs  
• The structure of the GLN

For schedule and attendee information, click here.
What’s New in GLN:

GPOs renew contracts  
Five leading U.S. health care group purchasing organizations (GPOs), Amerinet, Consorta, MedAssets Supply Chain Systems, Novation, and Premier, are subscribers to the GLN Registry for Healthcare™, a database containing a comprehensive list of health care facilities within the United States and their unique Global Location Numbers (GLNs). A GLN is a globally recognized identification number based on GS1 System (formerly EAN.UCC System) standards.

GLNs are being assigned
As of April 2006, registry includes more than 84,000 GLNs for hospitals, health care manufacturers and distributors, clinics, retail and mail-order pharmacies, and other health care-related facilities.
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GLN Quote of the Month

“The use of the GLN is important for our organization. It would result in reducing the number of customer numbers that we actively managefrom 1,100 to about 40, a 96% reduction.”
GLN Tip of the Month: How to Get a Global Location Number (GLN)

If you belong to a group purchasing organization which is a member of GS1, you
can get a GLN number by contacting:

Jim Van Drasek
System Director, Materials Mgmt.
HealthEast Care System
St. Paul, Minnesota
Amerinet
Terri Jarus
Vice President, Contract Services
314-542-1902

Consorta
Ellen S. Blix
Manager, Membership Services
847-592-7886

MedAssets
Michael Hayes
Director of Product Development
MedAssets Analytical Systems
720-407-1746
Novation
Jay Bass
Manager, Operational Services
VHA, Inc.
972-830-7889

PREMIER
Kathy Markham
Business Analyst, Operations
704-733-5544

GS1
John Roberts
Director of Healthcare
609-620-4563

PDU  (product identification)  _______________________________________ 
About Product Data Utility (PDU):

Data synchronization is the electronic transfer of standardized product and location information and the continuous synchronization of that data over time. Product information includes:

• Item attributes controlled by the supplier, such as size, height, and weight
• Price and promotion data controlled by the supplier

Location information includes:

• Locations involved in trade, such as headquarter, billing, and ship to addresses

To be effective, data synchronization can not be done once. It is an ongoing business process that requires continuous exchange of data between trading partners.

A health care PDU would provide a central industry resource for standardized product data from manufacturers and distributors and enable all participants to synchronize and maintain accurate item files in near real time from the manufacturers through the supply chain the end user.

PDU Webinar Now Available

On April 24, CHeS sponsored “Health Care Product Data Utility for Hospitals and IDNS”. If you missed this session, you can download it here.
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What’s New in PDU:

PDU White Paper Tells All

According to the Data Synchronization in Healthcare: A Solvable Problem white paper, leaders in the healthcare supply chain are rapidly reaching the same conclusion as those in a growing number of other industries already have. Authors William L. Rosenfeld and John L Stelzer of Sterling Commerce document that inconsistent, inaccurate business information within and between companies directly undermines critical business objectives (e.g., revenue, profit, time-to-market, customer satisfaction, etc.). Supply chain masters like Wal-Mart, Walgreens, CVS, Rite-Aid, Eckerd Drug, Kroger, Albertsons, Johnson & Johnson, Pfizer, Kimberly-Clark, Wyeth Health, Procter & Gamble, and thousands of others are forging a new level of business efficiency and effectiveness.

The secret to their success is rooted in something called global data synchronization. By establishing a foundation of accurate, consistent business information within their organizations and between themselves and others with which they conduct business, these companies are posting heretofore unheard-of performance improvements. What is perhaps even more important, though, is the fact that this foundation of reliable business information is driving enormous upside potential for process streamlining and automation to further improve business performance.

For a complete PDF of this white paper, released in February 2006, click here.
PDU Organizing Committee Expands

New members include representatives of Carolinas Medical Center:

• OSF Healthcare System
• Mayo Clinic
• Lawson Software
• Enthicon Endo-Surgery

For a complete listing of Committee member organizations, click here.
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RFI to be issued by PDU Organizing Committee

The PDU Organizing Committee is currently following a project plan for 2006 which calls for a Request for Information (RFI) document that will outline the requirements and expectations for a health care PDU. In preparation for issuing a RFI, CHeS has contracted with a leading authority on the development of PDUs in other industries to produce the specifications for a requirements document for a global health care PDU.
 
The document will give details as to the requirements for the adoption and implementation of data synchronization. Included will be:

• In-depth analysis of current state of the data synchronization initiative
• Overview of current health care environment as it pertains to a health care PDU
• Detailed documentation of requirements needed for the implementation of a
   health care PDU
• Information and recommendations related to Certified Data Pools
• Detailed recommendations for next steps moving forward

The requirements document is scheduled to be complete in August, 2006. Stay tuned for more information about this important action step.
PDU Quote of the Month
 
“We all have bad data. Synchronizing data via industry PDU can reduce transaction costs, increase efficiencies and improve patient safety.”

Kathleen Garvin
Program Manager
Department of Defense
Data Synchronization
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UNSPSC®  (product classification)  ____________________________________
About UNSPSC®:

The United Nations Standard Products and Services Code® (UNSPSC®) is an open, global standard taxonomy that allows organizations to consistently classify the products and services they buy and sell. Sanctioned by the United Nations and administered by GS1 US, the UNSPSC is designed to group similar products together into categories, which is valuable for analysis, organization and searching for and ordering products.
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What’s New in UNSPSC®:

Case studies tell the story of providers using UNSPSC®

Learn how two leading health care providers implemented the UNSPSC® to classify products across their systems to understand what is being ordered, how it is being ordered and at what cost.
 
University Health Care is the leading health care provider in a 22-county region, with 450 independent, private physicians. Launching into a classification project in August 2004, University mapped out a strategy for bringing structure to the hospital's supply item master file using UNSPSC® categories. Follow the process and learn how using the UNSPSC® data standard to negotiate a purchasing agreement saved University $600,000 per year. Download the study here.

A health care delivery network of aligned hospitals, clinics, long-term care facilities, home care agencies and many other programs makes up Ministry Health Care, serving Wisconsin and Minnesota. Learn how this major health care provider moved from eight different MMIS systems with line items numbering from 8,000 to 30,000 to a shared item master using UNSPSC. Download the study here.
New UNSPSC® Blog!

Interested? Visit this unofficial blog now and post your comments.

Fast Fact: Average search results list over 100 blogs with UNSPSC references and advice.
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Usage up in 2006

The Coalition for Healthcare eStandards (CHeS) first endorsed the use of the UNSPSC® in 2002. To learn how the nation’s top group purchasing organizations and supply chain solutions companies are using the UNSPSC and making it available to their customers and member organizations, click here.


UNSPSC® User Tip of the Month

By embedding UNSPSC® classification standards into management systems, procurement can keep an eye on how much is spent buying what. This can take half (or less) the time it takes to find the products by searching by commodity code through brokers, online exchanges, business partners, etc. Use UNSPSC® to spot buying patterns across departments or business units to leverage better conditions from suppliers and realize overall savings.

UNSPSC® Quote of the Month

“My first day on the job, my boss told me to just pay attention to coronary stents and spinal implants. I immediately discovered that I had no usuable data upon which to base my actions. I was flying blind.”

Mike Brown
Director of Purchasing
University Health Care System
About the Coalition for Healthcare eStandards (CHeS)  _________________________
The Coalition for Healthcare eStandards, Inc. (CHeS) is a collaborative of organizations dedicated to promoting the adoption and use of open data standards in the health care industry. Through the work of task forces, CHeS makes recommendations to accelerate industry-wide adoption of comprehensive data standards and encourages other industry representatives to participate in e-commerce standards work groups.

For more information about the CHeS, visit www.CHeStandards.org.
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