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RE: 845 Transaction

From: "Rachel Foerster" <rachelf@...>
Date: Fri Feb 1, 2002  7:01 pm
Subject: RE: [EDI-L] 845 Transaction
Erica,

The 845 is the designated transaction for group purchasing contract price
notification within the medical products supply chain. Its typical intended
use is between the manufacturer and its distributors to notify the
distributors of the following:

1. When a new contract has been awarded by a group purchase organization
(GPO) to a manufacturer
2. To identify the products covered by the GPO contract
3. To identify eligible buyers under the GPO contract (i.e., the GPO
members)
4. To specify the product pricing for the eligible buyers (i.e., what
pricing tier is the member eligible to buy under)
5. To add/change/delete the eligible members
6. To add/change/delete product/price information
7. To add/change/delete pricing tiers

The Health Industry Business Communications Council's EDI Technical
Committee (of which I was the chair for many years during the 1990's)
developed implementation guidelines for how to use the 845 in health care. I
believe this guideline may still be available for download from HIBCC's web
site at www.hibcc.org.

However, as you no doubt know, GPO contracts can be quite complex, and the
use of the 845 then becomes quite complicated as well. I don't believe that
the 845 has yet achieved a critical mass of implementation/deployment for
several reasons, not the least of which is the accurate identification,
relationship and eligibility of GPO members, since most health care
providers are members of more than one GPO. Thus, maintaining current GPO
membership files and keeping them in sync between the
GPO/Manufacturer/Distributor has been and continues to be a major issue for
the medical products supply chain and directly affects the ease of use of
the 845, among other business processes. Other factors are the myriad
pricing rules/tiers in the various GPO contracts, some of which can have
more than 100 different pricing tiers.

A few years ago I provided consulting services to one of the leading
national distributors to design their electronic GPO contract notification
system using the 845. At that time we developed at least 12 different guides
for using the 845 to convey the variety of information contained within a
GPO contract in a simple, yet complete and understandable manner.

Don't know what other industries are doing with the 845. Also, keep in mind
that for health care the 832 is the transaction used between GPOs and
manufacturers/distributors/hospitals for contract pricing. The 832 is also
used for "vanilla" (if there is any such thing!) electronic catalogs in
health care between all parties.

Rachel Foerster
Principal
Rachel Foerster & Associates, Ltd.
Professionals in EDI & Electronic Commerce
39432 North Avenue
Beach Park, IL 60099
Phone: 847-872-8070
Fax: 847-872-6860
http:/www.rfa-edi.com


-----Original Message-----
From: Erica Wiley [mailto: Sent: Friday, February 01, 2002 12:43 PM
To: Subject: [EDI-L] 845 Transaction


Does anyone out there have any experience with the 845
Transaction Set (Price Authorization
Acknowledgment/Status)? If so, please tell me what
you use it for, whether you send or receive the
document and if you have found it useful.

Thanks,

Erica Wiley
DeRoyal Industries, Inc.

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