SOURCE: Novation

August 31, 2005 09:39 ET

Novation Awards Diagnostic Imaging Contracts to Nine Suppliers, Providing Significant Savings to VHA and UHC Member Hospitals

IRVING, TX -- (MARKET WIRE) -- August 31, 2005 -- Novation, the supply company of VHA Inc. and the University HealthSystem Consortium, has awarded contracts to nine companies for diagnostic imaging capital equipment. The agreements take effect on September 1, 2005, and run through August 31, 2008. Novation awarded the contracts through its public competitive bid process, with input from member surveys and its member-based Novation Imaging Capital Task Force.

The total potential for VHA and UHC member purchases across all product categories covered by the new Novation contracts is $1.9 billion, although Novation does not anticipate that members will purchase all that is available through the new contracts. The agreements could provide up to a 36% percent savings for VHA and UHC members over the previous offering.

The new Novation agreements include the following companies and products:

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Company                                     Product(s)
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Del Global Technologies             Direct Radiography,
(Valhalla, N.Y.)                    General Radiography
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Eastman Kodak Company               Direct Radiography
(Rochester, N.Y.)
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Fuji (Stamford, Conn.)              Direct Radiography
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GE Healthcare (Waukesha, Wis.)      CT, PET/CT, Closed and Open MR,
                                    Cardiac Vascular, Ultrasound Radiology,
                                    Ultrasound Cardiology, General
                                    Radiology, Nuclear Medicine,
                                    Radiographic Fluoroscopy, C-Arms, Mini
                                    C-Arms, Mammography, Ultrasound
                                    Portable, Ultrasound Vascular Access,
                                    Bone Densitometry, Urology
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Hitachi Medical Systems America     Open MR, Ultrasound Radiology
(Twinsburg, Ohio)
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Hologic Inc. (Bedford, Mass.)       Mammography, Bone Densitometry
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Siemens Medical Solutions           CT, PET/CT, Closed MR, Cardiac
(Malvern, Penn.)                    Vascular, Ultrasound Radiology,
                                    Ultrasound Cardiology, General
                                    Radiology, Nuclear Medicine
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SonoSite Inc. (Bothell, Wash.)      Ultrasound Portable, Ultrasound
                                    Vascular Access
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Tyco Healthcare (Mansfield, Mass.)  Urology
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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 2,500 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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