June 27, 2005 18:03 ET

Baptist Memorial Health Care Renews and Expands Relationship With VHA

IRVING, TX -- (MARKET WIRE) -- June 27, 2005 -- Baptist Memorial Health Care, Memphis, Tenn., has decided to renew and expand its relationship with VHA Inc., the national health care alliance. Through a new five-year agreement, Baptist and VHA will collaborate to help the health system reduce its supply chain costs.

With this new agreement, VHA, its supply company, Novation and Baptist are creating a customized approach to supply chain management and moving beyond the traditional group purchasing model -- VHA and Novation will become extensions of Baptist's internal supply chain team.

"Baptist is a top-rated health system that provides essential services to communities in three states," said Stuart B. Baker, M.D., executive vice president at VHA. "We're pleased that it has renewed and expanded its relationship with VHA."

Baptist will use VHA and Novation expertise to purchase medical-surgical supplies, pharmaceuticals, capital equipment, food products, lab equipment and other supplies. Baptist estimates it will purchase nearly $170 million annually in supplies and services through VHA and Novation contracts.

"We considered several opportunities to work with other organizations that provide similar services," said Don Pounds, senior vice president and chief financial officer for Baptist. "But we felt that VHA's approach to custom supply chain management, its focus on helping members collaborate to enhance clinical performance and the financial benefits generated by VHA's new business model provided the best opportunity to lower our supply costs and maximize the value we receive."

About VHA

VHA Inc. is a national alliance of leading not-for-profit health care organizations that work together to improve the health of the communities they serve. VHA delivers industry leading supply chain management services and enables regional and national member networks to improve clinical and operational performance and drive sustainable results. Based in Irving, Texas, VHA has 18 local offices serving more than 2,400 health care organizations across the United States.

About Baptist Memorial Health Care

One of the largest not-for-profit health systems in the United States, Baptist is an integrated health care delivery system offering a full continuum of care to communities throughout Tennessee, Mississippi and Arkansas. With the intention of caring for people close to their homes, the Baptist network consists of 15 hospitals; more than 2,500 affiliated physicians; home, hospice and psychiatric care throughout the tri-state Mid-South area; minor medical centers and clinics; a chain of surgery, rehabilitation and other outpatient centers; and an education system highlighted by the Baptist College of Health Sciences. It is one of the top-rated integrated health care delivery systems in the country, according to the American Hospital Association, and the only Memphis-based provider that spans three states. For more information, visit

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