Increasing Efficiency in the Healthcare Supply Chain through NEHTA Maria Palazzolo CEO

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1 Increasing Efficiency in the Healthcare Supply Chain through NEHTA Maria Palazzolo CEO

2 Agenda Australia s healthcare system GS1 Australia in healthcare Introducing the National E -Health Transition Authorit y The NEHTA Supply Chain Program and GS1 standards The Future Direction 2

3 Australia In land area, is estimated to be 7,692,024 square km Sixth largest nation after Russia, Canada, China, the United States of America and Brazil 23 million people currently live in Australia 64% of people live in capital cities 36% live in regional Australia, approximately 8.28 million Source: About Australia; 3

4 Australia s Healthcare Environment Life expectancy continues to increase, so an Australian male born today can expect to live to 79.2 years and a female to 83.7 years Australians aged 80 years or over is about 800,000 (3.7% of the total population); nearly 2/3 are female Healthcare is funded from multiple sources 70% is publically funded & 30% privately funded 8 State & Territory Governments (State Health Departments) and Federal Department of Health and Ageing Healthcare provision is costly and complex expenses are growing Expenditure on health was 9.1% of GDP in , amounting to over $103 billion or $4,874 per person In this increased to $121.4 billion, or 9.4% of the GDP Source: Australian Institute of Health and Welfare; and 4

5 GS1 Australia Serving Australian Industry for 35 years Over 17,500 members across 21 industry verticals Enabling implementation through industry services like, NPC, GS1 Recallnet, GS1 Locatenet, GS1 GoScan and many others Engaged with Australian healthcare sector for 10+ years

6 Second local User Group, formed in 2006 Monthly leadership teleconf erences GS1 Healthcare User Group Australasia 2 industry wide face to face meetings per annum Australia & New Zealand Active engagement with Solution Providers 6

7 Industry Driving Direction GS1 Healthcare User Group Australasia Leadership T eam Lyn Cormack, Tender and Contracts Manager Health Care, 3M Australia Pty Ltd Dianne Prince, Customer Supply Chain Manager, Abbvie Pty Ltd Chris Parkinson, ANZ Supply Chain Manager, Braun Australia Group Ged Halstead (Co-Chair), Chief Information Officer, Clifford Hallam Healthcare (CH2) Valentino Bulaon, Manager, Catalogue & Procurement Information, HealthShare NSW Health Eva Chow, IT Director, Medtronic Australasia Mark Brommeyer, Manager Supply Chain, National E-Health Transition Authority (NEHTA) Robert Baxter, Operations Director, Smith and Nephew Advanced Surgical Division Matt Malone, Chief Information Officer, Symbion Pharmacy Services Yvonne Bell (Co-Chair), National Business Support Manager, Terumo Australia Pty Limited 7

8 NEHTA The National E-Health Transition Authority (NEHT A) is a company established by the Australian, State and Territory governments in 2005 to develop better ways of electronically collecting and securely exchanging health information. Independent company state and federally government f unded, including: Board of Directors (CEOs of Health Jurisdictions, an Independent Director and an Independent Chair) Board Committees The Chief Executive Officer The Company Secretary The NEHTA Organisation Source: NEHTA 8

9 Healthcare supply chain reform Supply Chain Reform needed because: 1. Lack of standardised product identification 2. Lack of standardised location identification 3. Multiple product data catalogues being maintained per hospital, per hospital network and per state Poor supply chain costs the health system money: Wrong product ordered/del ivered Wrong quantity/poor forecasting and inventory management Automating processes enables supplier and buyer organisations to: Reduce redundant purchasing tasks Improve inefficient work practices Achieve greater accuracy in procurement and tendering Source: NEHTA 9

10 Healthcare Supply Chain Reform Accurate Data is Critical ehealth Supply Chain Ref orm can deliver: The right products, at The right price, for The right person, in The right location, at The right time Source: NEHTA 10

11 NEHTA Leveraging GS1 Standards NEHTA chose to assess current market direction and leverage existing standards rather than creating Australian specific solutions. As a result Australian Healthcare supply chain reform is based on the GS1 standards. Program Component Product Identification Location Identification National Product Catalogue NEHTA eprocurement Solution Location Number Directory Electronic Recall Notification Solution GS1 Standards Global Trade Item Number Global Location Number Global Data Synchronisation Network GS1 XML GS1 Australias Locatenet Service GS1 Australias Recallnet 11

12 The National Product Catalogue The National Product Catalogue (NPC) is a way for suppliers to provide standardised and accurate product and price data electronically to the Australian health departments and private hospital providers. The NPC provides suppliers with a single mechanism to communicate structured catalogue data to many health customers and the health customers a single way to access this data from multiple suppliers. The NPC enables synchronisation of product and pricing data for accuracy in electronic procurement. Source: NEHTA

13 NPC Value and Use Cases 13

14 NPC Data Synchronisation 14 National E-Health Transition Authority Source: NEHTA Product data is common to all - Price data is customer specific

15 NPC Data Usage The NPC contains 314, 000+ GTIN records More records are being added each month More than 430 suppliers provide data to the NPC 25+ data recipients use the NPC data All public health jurisdictions Major private sector buyers Wholesalers and distributors Recent Healthcare Data Crunch report findings:- By conservative estimates, more than $100 million in potential savings can be achieved by addressing product data quality issues The report also identifiies the benefits to all parts of the supply chain by bringing healthcare product data quality up to best practice Using the NPC takes 10% of manual order errors to less than 1% Source: Healthcare Data Crunch Report : Nehta, RMIT University, Medical Technology (MTAA ),GS1 Australia 15

16 GS1 Locatenet for Healthcare More than 2500 GLNs loaded and increasing with automated loading processes being enabled GLNs are needed for identification of: Data source and data recipient in the NPC Price location in the NPC Physical locations for logistics movement Sender and receiver for electronic messaging

17 Healthcare Recallnet The Project Project Need Product recalls have a large impact on all involved Product recalls are increasing Opportunities exist to improve the product recall process through new technologies, data standards and a more streamlined process Project Mission To deliver an electronic product recall notification system in the Australian healthcare sector, through a phased approach, to improve the speed and accuracy of the therapeutic goods recall process with the aim of improving patient safety. NPC is key to standard data and a shared identifier across all parties GS1 Product Number (GTIN) and Locat ion Number (GLN) Source: NEHTA

18 GS1 Recallnet Value and Use Cases 18

19 GS1 Recallnet Healthcare Therapeutic Recall & Non-Recall Action Notification Process 6 Please note: The term Recall is used in these slides to refer to both Recall and Non Recall Actions as defined in the Uniform Recall Procedure for Therapeutic Goods TGA assesses the notification, proposed recall strategy, customer communication and the required information submitted by the sponsor. Based on this assessment, TGA will provide comments to the sponsor and if the proposed recall strategy and customer communication are acceptable, will agree to the recall and issue a TGA Reference ID. This communication happens outside of GS1 Recallnet Healthcare TGA TGA Agreement 6 TGA Ref ID TGA Recall Notice Recall Receivers State Health Departments Local Heath Network s / Districts Recall Coordinator CHO Office Central Warehousing LHN CEO LHN Chief Pharmacist LHN BiopMed Engineer Hosp. CEO Hospitals Hosp. Chief Pharmacist 7 Hosp. BiopMed Engineer Wholesalers Nominated Rep. Nominated Rep Create Notification Submit Notification Internal Acceptance TGA Assessment Go Live Pharmacies Nominated Rep. Nominated Rep Initiator Approver RECALL SPONSOR Approver Approver Approver Retailers Nominated Rep. Nominated Rep

20 Physical Goods Marking 100% 80% 60% 40% 20% 0% % No Code % Not GS1 %GS1 Medicines Year %GS1 % Not GS1 % No Code % 80% 60% 40% 20% 0% % No Code % Not GS1 %GS1 Medical Devices Year %GS1 % Not GS1 % No Code

21 Linking the Medicines Concept to the Physical Product Australian Medicines Terminology (AMT) Developed to be fit for the purpose of unambiguously identifying for clinicians and computer systems, commonly used medicines in Australia and can be implemented in clinical information systems for the following activities: Prescribe Record Review Issue including dispense Administer Transfer of information Source: NEHTA 21

22 Proposed Next Steps Linking the Medicines Concept to the Physical Product 1. Phase 1: Associate AMT identifier to GTIN align with TGA processes f or new medicines. 2. Phase 2: Associate AMT identifier to GTIN existing medicines on the NPC. 3. Phase 3: Enable interoperability between applications and clinical information systems to deliver greater quality, safety and efficiency of care in relation to medicines, e.g. bar code scanning to the bedside. Source: NEHTA 22

23 Ultimately, it s all about PATIENT SAFETY! 23

24 Contact Details Maria Palazzolo CEO GS1 Australia

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