Name change, first product launch signals intent of HealthNexis to keep up with 'Net competitors - Brief Article

Health Industry Today, May, 2001

The e-commerce provider formerly known as the New Health Exchange changed its name and then launched its first product release last month, signaling its intent to stay in lockstep with its direct competitors in both the U.S. and Canadian health care markets.

Founded in April 2000 by four of the nation's largest health care companies--AmeriSource Health Corp., Cardinal Health, Fischer Scientific Intl. Inc. and McKesson HBOC--the Internet third-party provider company will now be known as HealthNexis (NHX).

David Hurley, CEO of the newly named Internet provider, said Nexis means "that which unites" and "a means of connection," symbolizing the company vision of streamlining health care through information and technology solutions.

"The former name was useful last April when the company was announced," said Hurley. "It helped the industry understand we were coming together to develop a neutral, independent company dedicated to improving supply chain processes."

He added that the name change reflects the company's vision of "uniting health care through powerful information and technology solutions."

Hurley said his organization remains committed to keeping pace in the head-to-head competition with major players Neoforma, medibuy and Global Healthcare Exchange (GHX).

As such, NHX took its first step toward realization by announcing the launch of its Transaction Clearinghouse.

Clearinghouse went live last month, in concert with GHX's announced intent of going online by the end of first quarter 2001. Canadian Health Marketplace (CHM), powered by Neoforma, said that it launched an informational site as a preview to its full-service site, and Premier introduced a new e-commerce gateway for its 1,850 members--Premier Exchange--powered by medibuy.

The ramping up of third-party Internet sites will be closely watched throughout the industry. The simultaneous launches will probably be regarded as make-or-break beta testing by the health care providers and suppliers who remain unconvinced of the efficacy and cost effectiveness of device and med-surg product e-commerce intermediaries.

Clearinghouse connected the four founding companies and Bergen Brunswig Corp. to HealthNexis. It's based on a common set of data and transmission standards and is said to contain synchronized, centralized data repositories and an integrated set of management tools.

NHX said it provides a single point of access for transmitting transactional, product and contract date to multiple trading partners.

"The release brings immediate value to our members by simplifying and decreasing the cost of connecting to and communicating data along their supply chains," insisted Hurley.

David Yost, CEO of AmeriSource, a founding company that recently announced plans to merge with Bergen Brunswig, said connecting to Clearinghouse "required very little effort."

NHX said it will follow with launches of its Product Data Manager, Contract Data Manager and Data Services. The company will release its core offering in stages over the next nine months. Product Data Manager is scheduled for delivery in early June.

* www.healthnexis.com