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KSR Publishing, Inc.
Copyright © 2010

People, Places, Processes & Products that Influence the Supply Chain

INSIDE THE CURRENT ISSUE

May 2009

Standard Procedures

GS1 Standards Overview and Resources

Global Trade Item Number (GTIN): This is a 14-digit number used to identify trade items at various packaging levels. For the familiar UPC symbology, the GTIN is the 12-digit number at the bottom of the bar code. Without the GTIN, product identifiers are routinely changed to suit the needs of different trading partners, resulting in transaction errors and requiring inefficient workarounds to compensate.

Global Location Number (GLN): The Global Location Number is a 13-digit standardized number that can be used to identify headquarters locations, branches, shipping points and individual departments. All of these can be maintained and looked up online in the Global Registry for Healthcare.

Global Data Synchronization Network (GDSN): The GDSN enables standardized, validated product data to be exchanged between trading partners on the GDSN Network. It consists of a GS1 Global Registry that connects to numerous interoperable data pools around the world. The network allows for one single point of entry so that trading partners only need to join one certified data pool, anywhere in the world, to communicate with any other trading partner in the GDSN. Today, GDSN is used for over 15,000 companies and 2 million products by manufacturers, distributors, hospitals and retailers around the world. Improvement has been specifically identified in the areas of new item setup, logistics, invoicing, speed to market, and data accuracy.

Additional information on GS1 standards can be found at:

• GS1: http://www.gs1us.org

• GTIN Allocation Rules: http://www.gs1.org/gtinrules/
index.php/p=home

• GLN Allocation Rules: http://www.gs1.org/glnrules/
index.php/p=home

• GDSN Main Page: http://www.gs1.org/
productssolutions/gdsn/

• Coalition for Healthcare eStandards: http://www.chestandards.org

• AHRMM Standards Page: www.standards.ahrmm.org

Source: Premier Inc.

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Premier CIO conducting data synchrony

Alliance pushes harder for supply chain data standards

by Rick Dana Barlow

While talk may be cheap and fleeting as the old adage implies, and the written word may add more formality than value, Premier Inc. is reinforcing its intent to support supply chain data synchronization requirements with its contracted suppliers, courtesy of more than two dozen high-ranking hospital supply chain executives.

The national alliance’s Premier Purchasing Partners L.P., marshaled the collective endorsement of 25 members of its Strategic Advisory Committee formally to request that contracted suppliers adopt GS1 data standards and processes to "improve patient safety, reduce avoidable supply chain costs and advance collaborative supply chain performance initiatives."

In a letter to suppliers signed by 25 supply chain leaders ranked from corporate director to senior vice president – including one CEO – from a bevy of prominent healthcare provider organizations, the committee extolled the GS1 standards and outlined a five-year plan for adoption, culminating by the close of December 2012.

Premier called for a formal launch and education effort in 2008, which included modifying contract terms and conditions to include requirements for standards compliance.

In 2009, Premier requested that providers and suppliers recognize Global Location Numbers (GLN) and that the suppliers begin to register Global Trade Item Numbers (GTIN) for their products.

Premier is requiring its providers and suppliers to recognize and use GLNs by the close of 2010 and the use of GTINs for all products by the end of 2012.

Such requirements, according to Premier, also include registering with GS1 to receive a GTIN number block and with the GLN Registry for Healthcare; building the "capability to leverage GLNs in enterprise systems and business processes," as well as aligning business partner account numbers with GLNs and using "GLN location data and GTIN item data on all order-to-cash business transactions that reference locations."

Joe Pleasant Jr.

Joe Pleasant Jr., FHIMSS, senior vice president and CIO at Premier discussed with Healthcare Purchasing News his organization’s muscle behind data synchronization standards adoption.

HPN: How safe is it to infer from this December 2012 deadline that all Premier hospitals - shareholders and affiliates alike - will be actively and compliantly using GS1 standards for all products and services and all Premier contracted vendors will be doing the same by that time?

PLEASANT: It is our intent, for all products and services with any Premier contracted vendor, that each of our contracts will require that products have Global Trade Item Numbers (GTINs) on them to the level of issue.

There may be exceptions given certain types of products. For instance, it may not be possible to put a code on a product due to the product’s physical size and shape or because of patient safety issues due to the environment in which the product will be placed. But we will insist on the ability to track the product life-cycle from start to finish.

As the groundswell of support for GS1 standards continues via GPOs, the FDA and others, we feel that our members and suppliers will want to adhere to these standards in order to improve efficiency and safety within this time period. But, for instance, if FDA suggests a differing time frame or specific requirements that we have not considered, we would clearly look at adhering to such.

We are very interested in working with our members and suppliers to understand unique needs and situations so that we are able to achieve these goals.

How will Premier encourage or enforce member hospitals to comply with GS1 standards to either meet the 2010 and/or 2012 deadlines?

We are and will continue to work with our member hospitals and suppliers, educating them on how using GS1 standards improves both patient safety and efficiency.

Likewise, some of our members are also educating their peers and leading by example. Recently, 25 of our member healthcare systems representing 100s of hospitals and treating millions of patients – the leading healthcare institutions in the world – endorsed these standards. And organizations like AHRMM and GS1 are working to further education and drive increased compliance.

If these are not solid deadlines, what’s the point?

We believe that, in order to make progress, goals need to be established, and deadlines and timeframes need to be stated. Without such an approach, we do not believe we will see the movement we need to further enhance supply chain efficiency and patient safety. We need to get the ball rolling for the sake of our patients and the hospitals we serve.

Will Premier consider punitive measures to enforce GS1 compliance among member hospitals, such as fees, reduced contract discounts or even expulsion? Why?

No. The majority of our hospitals have asked to have this type of structure in place, and many have endorsed them. But there will be no punitive measures for our members. We will do what we can to educate them and work with them toward standardization.

If they won’t be fully using GS1 standards for all products and services, what percentage of Premier hospitals will be and for what percentage of contracted products and services? What are the yearly quotas Premier plans to meet in order to be fully compliant by January 2013?

The majority of our members have requested these standards. We have not set any annual quotas at this point, nor looked at these types of percentages. We do have an internal project plan that outlines the number of members and hospitals that we contact and schedule education and implementation sessions with on a month by month basis.

Premier’s Standards Bearers

1. Child Health Corporation of America

2. Banner Health System

3. Bon Secours Health System Inc.

4. Health Enterprises Cooperative

5. Catholic Healthcare West

6. Prairie Health Ventures

7. Adventist Health

8. Baptist Health South Florida

9. Methodist Healthcare

10. Texas Health Resources

11. Detroit Medical Center

12. Sharp HealthCare

13. Methodist Health System

14. Fairview Health Services

15. Henry Ford Health System

16. PeaceHealth

17. SSM Health Care

18. Resurrection Health Care Corp.

19. University of Texas MD Anderson Cancer Center

20. Greater New York Hospital Association

21. Adventist Health System

22. Cleveland Clinic

23. Catholic Healthcare Partners

24. Yankee Alliance Supply Chain Cooperative Inc.

25. West Penn Allegheny Health System

 

How will Premier encourage or enforce contracted suppliers to comply with GS1 standards to either meet the 2010 and/or 2012 deadlines?

We will work with them in any way possible to assist with education and information regarding the importance of these standards. We will likewise work with organizations such as GS1 and AHRMM. We are doing what we can to avoid getting to a position of enforcement and will address that issue as needed as we get closer to the deadlines. As mentioned, as the groundswell of support for these standards continue, we feel that our suppliers will want to adhere to these standards for efficiency and safety sake within this time period.

By the same token, if Premier-contracted suppliers won’t be fully using GS1 standards for all products and services, what percentage of them will be and for what percentage of contracted products and services? What are the yearly quotas Premier plans to meet in order to be fully compliant by January 2013?

We will know better as the process proceeds and we continue to work with suppliers, the FDA and GS1. It is our intent that every product not prohibited because of size, shape and safety requirements would have GTIN numbers on them. We have not set any annual quotas at this point, nor looked at these types of percentages. We do have an internal project plan that outlines the number of suppliers that we contact and schedule education and implementation sessions with on a month by month basis.

Will Premier consider punitive measures to enforce GS1 compliance among contracted suppliers, such as fees or early contract terminations? Why?

It is our hope that our suppliers will want to comply for the sake of safety and efficiency. We feel that those that comply will also be looked upon in a favorable manner by the industry as a whole, especially as support for overall compliance continues to grow.

Of the 25 individuals who signed this letter, what percentage is adopting GS1 standards currently and how far along are they in the process? Which standards? Which product areas? Do they plan to meet these deadlines as an example to others?

All of the systems are in varying stages of the process of adopting-educating-implementing these standards. They clearly understand the benefits and have committed to moving forward within their institutions to further enhance patient safety and efficiency. When these types of highly respected and successful organizations make this type of commitment, others will follow.