New Company Forms to Deliver End-to-End E-Business Solutions to Healthcare Industry

Strategic Insights -

Tenet Healthcare Corporation and Chemdex Corporation have announced the formation of a new company that will provide business-to-business e-commerce solutions to the healthcare industry. The new company will leverage the healthcare and B2B e-commerce expertise of the founding companies, as well as their existing buyer and supplier contracts, to offer a complete vendor-neutral e-commerce solution for the $143 billion domestic high-volume medical and related supplies market.

Key Takeaways:

  • The new company will provide a comprehensive e-commerce solution for the healthcare industry, leveraging the expertise of Tenet and Chemdex.
  • The company will have a strong focus on the hospital market, but also plans to expand to the long-term care and outpatient markets.
  • IBM Global Services will provide implementation, integration, and e-commerce services to the new company's customers and suppliers.
  • The new company will benefit from the purchasing power of BuyPower, Tenet's GPO, which manages over 400 vendor contracts generating over $3 billion in annual purchases.
  • Chemdex brings to the new company its scalable e-commerce platform, tailored procurement solutions, and comprehensive services and support.
  • The new company has the potential to play a leading role as a provider of e-commerce solutions to the healthcare marketplace, according to David C. Ricker, senior vice president of Materiel Resource Management for Tenet Healthcare.

Statistics:

  • The new company will focus on the $143 billion domestic high-volume medical and related supplies market.
  • BuyPower, Tenet's GPO, manages over 400 vendor contracts generating over $3 billion in annual purchases.
  • The new company will benefit from the purchasing power of BuyPower, which has 510 acute care hospitals, 531 non-acute facilities, and approximately 45,000 physicians.
  • Chemdex's scalable e-commerce platform will support the company's growth and expansion into additional markets.

Sources:

  • Tenet Healthcare Corporation (NYSE: THC)
  • Chemdex Corporation (Nasdaq: CMDX)
  • IBM Global Services
  • Promedix.com
  • BuyPower
  • Tenet Healthcare Corporation press release dated December 13, 1999
  • Chemdex Corporation press release dated December 13, 1999