Global Healthcare Exchange Canada is a business-to-business exchange that connects hospitals and their major suppliers through an electronic procurement process. Founded as a subsidiary of its global parent, the exchange has become the leading health-care exchange in the country, but it is still far short of break-even. It must develop a compelling value proposition if it is going to drive adoption among hospitals and suppliers to the target levels. To do so, it must overcome considerable inertia among hospitals that are often very reluctant to change from frequently inefficient purchasing processes. Although there are major benefits to be realized from automating supply chain operations in the industry, the adoption decision process among hospitals is highly complex, but very idiosyncratic. In confronting these challenges, the exchange must also re-examine its own business model, in particular its pricing strategy for both suppliers and hospitals.
