SOURCE: Medline

November 15, 2007 09:00 ET

Medline Signs 3-Year Agreement With Novation for Custom Surgical Procedure Packs

Medline Expects to Save Hospitals a Total of $15 Million to $20 Million; Dual Source Agreement Valued at $500 Million Annually

MUNDELEIN, IL--(Marketwire - November 15, 2007) - Medline, the nation's largest privately held healthcare products manufacturer and distributor, today announced it has been awarded a three-year agreement with Novation, whose alliance members represent more than half of all hospital admissions and total surgeries in the U.S. Medline expects to save members of the University HealthSystem Consortium (UHC), VHA and Provista between $15 million to $20 million during the contract period and this agreement has the potential to further increase savings through product standardization and utilization.

Under the terms of the dual source agreement, valued at $1.5 Billion over three years and effective February 1, 2008, Medline will manufacture and sell custom sterile surgical procedure packs to the alliances Novation serves. Each pack is made to the exact specifications of the participating hospital. In addition, Medline will provide clinical consulting and standardization services through its perioperative nurses and continuing education through Medline University.

"We're very pleased to have been chosen for this contract award for custom procedure trays based on the tremendous value we proposed to existing and new Medline customers," said Sidney Hobbs, vice president Medline National Accounts. "The agreement adds to our existing portfolio of 25 Novation contracts and underscores Medline's position as a leading supplier of quality products to the U.S. healthcare marketplace. Through this agreement, VHA, UHC and Provista member hospitals will realize significant savings and increased service over the next several years."

Quality Assurance

Medline has a 120 person staff dedicated to overseeing quality and manufacturing standards and uses class 10,000 clean room manufacturing. Medline is FDA QSR compliant and ISO 13485 registered.

Medline partners with organizations committed to improving patient care, including: 100,000 lives; the Joint Commission National Patient Safety Goals; and SCIP, Surgical Care Improvement Project.

About Novation

Based in Irving, Texas, Novation is the industry's leading contracting services company that delivers unmatched savings to more than 2,500 members and affiliates of VHA Inc. and the University HealthSystem Consortium (UHC) and over 10,000 Provista customers. By combining scale and agility with clinical knowledge and product expertise, Novation offers the most extensive range of innovative contracting services, including: contract development, contract and supplier management, custom contracting, enhanced savings programs, online contract management and analytical tools, order management and online supplier connectivity.

About Medline

Medline, headquartered in Mundelein, Ill., is a $2.45 billion company serving the healthcare industry with more than 100,000 products and services that help hospitals, extended-care facilities, surgery centers, home care providers, agencies, and other markets prevent hospital-acquired infections, improve product safety, deliver the highest standard of patient care and reduce costs. Medline has more than 800 dedicated sales representatives and 56 wound care specialists nationwide to support its broad product line and cost-management services. Meeting the highest level of national and international quality standards, Medline is FDA QSR compliant and ISO 13485 registered. Medline serves on major industry quality committees to develop guidelines and standards for medical product use, including the FDA Midwest Steering Committee, AAMI Sterilization and Packaging Committee and various ASTM committees. For more information on Medline, visit our Web site, www.medline.com.

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