SOURCE: Novation

March 15, 2005 10:55 ET

Novation Adds Veterans to Its Supplier Diversity Program

IRVING, TX -- (MARKET WIRE) -- March 15, 2005 -- Novation, the supply company of VHA Inc. and the University HealthSystem Consortium (UHC), announced today that it has expanded its Supplier Diversity Program to include small, veteran-owned (veteran, disabled veteran, and service-disabled veteran) business enterprises.

The health care organizations Novation serves are deeply committed to the economic development of their communities and want to do business with qualified minority-, women-, and veteran-owned business enterprises (MWVBEs). To meet this desire and encourage business opportunities for qualified businesses, Novation established the Supplier Diversity Program in 1999. Through the program, Novation:

--  Seeks agreements with certified minority-, women-, and veteran-owned
    manufacturers and distributors.
--  Maintains a database of approved MWVBEs as potential supply partners.
--  Creates opportunities for MWVBEs to do business with Novation's
    corporate office.
--  Generated $34.8 million in member purchases in 2004 (41 percent growth
    over 2003) and nearly $100 million since the inception of the program.
    
Currently, the program covers 27 supplier agreements and 34 distribution agreements.

"Contracting with diverse companies is an integral part of the Novation supply chain management strategy," said Cathy Denning, senior director, Contract and Program Services, Novation. "We are committed to encouraging and supporting MWVBEs."

The Supplier Diversity Program offers several benefits to larger suppliers and distributors:

--  Aligning with Novation strengthens the relationships with members and
    ultimately increases customer satisfaction.
--  The program creates an opportunity for large companies to mentor
    MWVBEs and to jointly bid on contracts with Novation.
--  They benefit from participating in a program that is seen as a "best
    practice" in the health care industry.
--  The program provides supply partners and distributors an avenue to
    support supplier diversity through sub-contract relationships with MWVBEs.
    
"The addition of veteran-owned businesses to Novation's Supplier Diversity Program reflects Novation's dedication to providing members broader access to historically underutilized suppliers," said Michael Hobbs, vice president, Custom Services, Novation. "This addition is in keeping with the highest military standards of professionalism that veterans of the military service exhibit."

About Novation

Based in Irving, Texas, Novation was established in January 1998 through a combination of the supply programs of VHA and UHC, two national health care alliances. Novation serves the purchasing needs of more than 2,300 members and affiliates of VHA and UHC. These organizations used Novation contracts to purchase more than $23 billion in supplies in 2004.

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