SOURCE: Novation

November 28, 2006 12:27 ET

Novation Awards Contracts for Trauma Products

Agreements Provide Savings for VHA & UHC Members on Physician Preference Products

IRVING, TX -- (MARKET WIRE) -- November 28, 2006 -- Novation has awarded dual-source awards for trauma products to Smith & Nephew and Synthes. The contracts are effective Dec. 1, 2006 and run through Nov. 30, 2009. Novation awarded the contracts through its public competitive bid process, with input from its member-based Orthopedic Council.

Trauma implants and devices are used by orthopedic surgeons to repair injuries to bones and soft tissues. The new agreements offer a complete line of physician preference trauma products and the flexibility to offer custom solutions to meet VHA Inc. and University HealthSystem Consortium (UHC) member needs. The new Novation agreements include internal fixation products (plates, screws and nail systems) and external fixation products (AO Bilateral Fixators, Jet-X Fixators, and Circular Hybrid Rings).

Member savings will depend on product mix and purchase volume. VHA and UHC members' savings will range from $250,000 to $1 million during the three-year term of the agreement if conversions are applied. Agreement pricing provides on average five to 10 percent savings over the previous Smith & Nephew contract and one to two percent savings over the previous Synthes agreement depending on product mix.

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 public 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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