SOURCE: Novation

March 05, 2007 11:53 ET

Novation Announces New Surgical III Standardization Program

Program Helps Hospitals Increase Savings

IRVING, TX -- (MARKET WIRE) -- March 5, 2007 -- Novation has launched its new Surgical III Program effective now through Dec. 31, 2009. The new program offers additional value and savings on select product categories to hospitals that are members of VHA Inc. and the University HealthSystem Consortium, two national health care alliances.

The new program provides rebates averaging more than four percent on purchases within the portfolio, increased cooperative returns for participating members and additional savings from standardization and utilization.

"The Surgical III Program is easier to implement as it has fewer categories, yet offers a similar cooperative return as the previous program," said Kathy Harlan, senior director, Standardization Program at Novation.

The program is comprised of eight product categories which include the following:

Program Categories              Supplier

Facial Protection and           Kimberly-Clark Corporation
 Related Products
Instrument Care                 Action Surgical Solutions
Laparascopic Irrigation         C.R. Bard/Davol
Lab Sponges, Specialty          NOVAPLUS®/Medical Action Industries
 Sponges and O.R. Towels
One Step Surgical Skin Prep     3M Health Care
Open and Close Wound Drainage   C.R. Bard
Surgical Equipment Covers       Microtek Medical Inc.
Surgical Gloves                 Ansell
                                Medline Industries
Standardization is a challenging aspect of supply chain management, but reducing variation in the types of supplies used can improve both operational and clinical efficiency. The Surgical III Standardization Program assists hospitals in developing their own framework for standardization.

About Novation

Based in Irving, Texas, Novation is the leading health care contracting services company, delivering unmatched savings and value to nearly 2,500 members of VHA Inc. and the University Health System Consortium (UHC), two national health care alliances. Through its competitive bid process, Novation develops and manages contracts with more than 500 suppliers, both large and small. 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. VHA and UHC members used Novation's contracts to purchase more than $25 billion in supplies in 2005.

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