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Thu, 08.05.2003
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pte20030508037 Science/Technology, Commerce/Services
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Increased use of WWW in health services
One third of procurement via internet by 2010

Frankfurt am Main (pte037/08.05.2003/14:54) - The EU Health Service is placing more importance on e-procurement. According to the consultanting firm Frost & Sullivan http://healthcare.frost.com , the business of ordering and buying via internet is becoming a more efficient way of requiring materials. In the year 2002, when e-procurement found its legs, electronic ordering in the EU health service sector had a turnover of 0.4b euros. For 2008 a turnover of 33.7b euros is predicted. By 2010, one third of procurement in the EU health service sector will be done via internet.

Buying managers from large institutions are currently using or evaluating the advantages of ordering from the internet. Smaller companies, and those that work less with computers, are profiting from the money being saved through e-procurement by ordering from buying organisations. It will take some time for e-procurement to be accepted fully, as most hospitals aren't yet used to the 'industrial' way of purchasing. Most large suppliers, however, are beginning to appreciate the advantages of internet ordering and buying. Global Health Care Exchange (GHX), a medication supplier, is attempting to win customers with financial incentives.

According to analysts, e-procurement in the health services sector is not yet used extensively outside Germany and Britain. Its development currently depends on political handicaps and lack of technical equipment in clinics. A continued improvement in sales potential is expected for users of this sales channel.

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