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Baxter Healthcare Initiatives Lower Costs



The cost of acquiring healthcare products looks set to reduce significantly, following the launch of two innovative online purchasing systems by Baxter Healthcare.

The new systems are the first steps in a strategy which has the potential to transform the entire healthcare supply chain, says Baxter New Zealand General manager David Pavey.

"The Baxter Online Store System (BOSS) allows health professionals to purchase products directly from Baxter via the internet, through a secure order entry system provided by esolutions - the Telecom, EDS and Microsoft alliance," said Mr Pavey. "Hospitals, medical laboratories, GPs, veterinary practices, Nursing Homes and others in the healthcare industry can all access the system via an internet browser, with a unique login and password." The system provides a personalised customer interface, which is related to the recognition of the user by the unique log in and password.

BOSS has been trialed over the past year with major hospital groups in the North Island.

The second initiative, The Home Equipment Medical Equipment Service (HOMES), will help ensure patients in their home through illness or disability will have their regular prescribed product requirements delivered to their door. "HOMES will allow district nurses and clinical assessors to enter home-based patients' requirements for healthcare products into the electronic system, and have them delivered directly to the patient at home. HOMES also allows district nurses to electronically manage all of their patient data, and provides reporting facilities as well," Mr Pavey said. "This system will provide a hospital or other medical user with greater visibility into expenditure and product usage, whilst still providing scope for meeting the clinical needs of the patient or end user".

Three major contracts for the HOMES system are already in place, which collectively reach several thousand home-based patients in New Zealand.

David Pavey said both BOSS and HOMES help reduce the "cost of acquisition" for healthcare products. "Reducing costs is critical in healthcare today," said Mr. Pavey. "By helping to lower supply chain costs, these initiatives will help ensure more money is available to purchase healthcare products for patients who need them."

The new systems are part of Baxter's Internet business strategy, which is driven by the company's legacy of innovation. Other developments in the pipeline include the introduction of an online "Health Store", a business to consumer initiative due to come online later this year. "The Health Store will provide consumers with information about where and how to purchase healthcare products and, where permitted, to purchase a number of products on line" said Mr Pavey.

BOSS and HOMES are both hosted by esolutions, who provide a secure online environment necessary for online transactions such as these. Their launch is the first step in the creation of an online health marketplace which, according to Mr. Pavey, will transform the healthcare market.

"esolutions are creating the marketspace, and healthcare providers like Baxter will essentially `rent space' in it," said Mr. Pavey. "We're providing our customers with choice in the way they buy healthcare products, and taking costs out at the same time. Uincreasingly we expect that they will choose to do so online. Baxter is taking the lead developing the new marketplace and providing that choice."

The online health marketplace is the second major B2B implementation by esolutions in New Zealand. It follows the recent launch of the BusinessXchange eprocurement solution, based on the Ariba(tm) B2B Buyer software, which links Telecom and the initial eight major suppliers with each other electronically, allowing online purchasing amongst this community. It is part of esolutions' strategy to enable online "communities of interest."

The online health marketplace concept builds on the infrastructure provided by the health intranet, which links health providers electronically and allows them to share information. Mr Pavey said extensive trialing of the new systems indicated some significant issues over access speed, which the health intranet has helped to overcome.

About Baxter New Zealand

Baxter New Zealand is part of the global Baxter group. With 176 manufacturing facilities in 47 countries, and manufacturing operating plants in 20 countries, Baxter is a truly global medical- technology and healthcare cost management company.

Baxter has a long history of innovation over the sixty years it has been in existence. Globally, Baxter has been responsible for medical breakthroughs in areas such as Renal Dialysis, Heart Valve replacement and blood component therapy.

Baxter New Zealand is the largest supplier of medical technology products for the healthcare industry, in this country. It is represented by offices and warehouse facilities in Auckland and Christchurch, with a staff of 120 employees.

About esolutions

esolutions is an alliance between Telecom, EDS, and Microsoft. It was launched in February this year to provide a range of services to customers combining the breadth and capabilities of all three parent organisations. Contact:


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