October 04, 2007 10:28 ET

Evanston Northwestern Healthcare Renews Relationship With VHA Inc.

New Four-Year Agreement Covers Medical-Surgical Products, Pharmaceuticals and Includes Significant Opportunities for Savings on Capital Equipment and Purchased Services

IRVING, TX--(Marketwire - October 4, 2007) - Evanston Northwestern Healthcare (ENH), one of the largest health care systems in the Chicago area, has renewed its relationship with VHA Inc., the national health care alliance.

ENH, which operates three hospitals in Chicago, initiated a review of its supply chain operations earlier this year to examine options to improve efficiency and effectiveness, understanding that the supply chain affects every aspect of how care is delivered to patients. After reviewing proposals from multiple organizations, ENH elected to renew its relationship with VHA and its contracting services company, Novation. ENH will utilize VHA to reduce overall supply costs and meet its annual cost reduction objectives. Currently, the health system purchases more than $125 million in supplies through Novation annually. Through the new agreement, Evanston Northwestern Healthcare will purchase medical-surgical and pharmaceutical products through Novation and will explore opportunities to save even more money by leveraging VHA's capital equipment and purchased services programs.

"We've been a member of VHA for 30 years, and we've found great value in that relationship," said Jeffrey Hillebrand, ENH chief operating officer. "Our decision to renew this relationship was based on the fact that VHA helps us extend our resources so that we can better serve the patients in our community."

"VHA offered us the tools, knowledge, and expertise to help us accomplish some aggressive objectives. VHA was a logical choice for us," said Hillebrand.

"Evanston Northwestern Healthcare is a founding member of VHA, and their decision to remain a VHA member validates our strength and keen focus on improving the health care supply chain for our members," said Stuart B. Baker, M.D., chief operating officer at VHA.

In 2006, VHA and Novation collaborated to save ENH more than $7 million dollars on supply purchases.

About VHA

VHA Inc., based in Irving, Texas, is a national alliance that provides industry-leading supply chain management services and supports the formation of regional and national networks to help members improve their clinical and economic performance. With 17 offices across the U.S., VHA has a track record of proven results in serving more than 1,400 not-for-profit hospitals and 21,000+ non-acute health care organizations nationwide.

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