Healthcare E-Commerce: Everybody Wins

Originally Published MX July/August 2003

ADVERTISING, DISTRIBUTION, & SALES

Use of Internet-based trading exchanges provides insights into purchasing patterns as well as numerous efficiency advantages.

Karen Conway

Electronic commerce (e-commerce) and its potential to reduce supply-chain costs have been much talked about in recent years. The 1996 Efficient Healthcare Consumer Response study suggested that the healthcare industry could recoup $11 billion if the supply chain were optimized.¹ Hospitals and healthcare systems nationwide increasingly are reporting the improved efficiencies they realize by automating their purchasing processes.

But many in the medical device industry still wonder: Can e-commerce really make a difference in profitability, or is it just something that must be undertaken obligatorily to satisfy customers? The answer to that question lies in understanding better what e-commerce entails and how it fits a company's overall business strategy.