E-Health's Execution Play
Combining the benefits of a disciplined hospital system and a leader in e-commerce, the new joint venture between Tenet and Chemdex hopes to create a differentiated offering in e-health. The new company has the ability to integrate the hospitals and suppliers Tenet/BuyPower represents, thus providing the critical mass that e-commerce companies have, until now, lacked. But company officials insist that their real advantage is that they offer a different approach to e-commerce, one that focuses on an end-to-end solution tied to the hospital's ERP system, rather than simply a web site to make ordering and inventory management more efficient.
You may also be interested in...
Six years ago, David Perry was one of the rock stars of the Web, the founding CEO of Chemdex-Ventro. He stuck with it as the company unraveled, shutting down most of the businesses he'd built, and merging the remainder into what is now an OTC-traded software company. Now he's applying the lessons he learned to his current company, Anacor Pharmaceuticals, a start-up which has discovered a small handful of now clinical-stage compounds.
Early efforts to define the opportunity for e-commerce identified the problem--an inefficient hospital supply chain--but failed to prove that e-commerce is necessarily the answer. Now, Novation and Neoforma, a leading hospital group and its e-commerce partner, have released an industry-wide look at Internet-enabled supply chain economics, done by consultants Arthur Andersen, hoping to prove the value to both providers and suppliers of widely implemented e-commerce.
This latest acquisition by e-health's MedAssets underscores how important established players like GPOs are in promoting an Internet-enabled hospital supply chain. In fact, MedAssets was arguably the first major e-health player to recognize that GPOs are not only vital for the base of customers and suppliers they bring, but can also be attractive sources of revenue.