Why supply chain reform in Health?

Health Online identified five key health information projects that depend on collaborative activity on a national basis. Introducing e-commerce in hospital supply chains was identified as a key project.

NHIMAC established the National Supply Chain Reform Task Force in July 2000 to support joint planning by governments, hospitals, purchasing agencies and product suppliers.

The major drivers for reform in health include:
1. Opportunities to reduce costs and improve the quality and reliability of supply chains.
2. The importance of positioning Australian hospital purchasers and their suppliers to respond to global e-commerce trends for hospital purchasing.
3. Size and fragmentation of the Australian hospital supply chain.
4. Different business processes, technologies and management approaches already add costs.
5. Inconsistent implementation of e-commerce will further entrench fragmentation, reducing potential gains and deterring industry participation.

The National Action Plan identifies national, state and local level activities to prepare the health sector and suppliers for the take up of e-commerce. The major focus is on business process redesign and adoption of Internet-based technologies to automate purchasing processes (order to pay cycle). This plan was endorsed by the Australian Health Ministers Advisory Council in October 2001.

New information and communications technology (ICT) governance arrangements are in place and the Task Force now reports to AHMAC through the National Health Information Group (NHIG).