SOURCE: Novation

April 02, 2007 10:00 ET

Novation Awards Non-Acute Contracts to 10 Medical-Surgical Distributors

IRVING, TX -- (MARKET WIRE) -- April 2, 2007 -- Novation, the health care contracting services company of VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances, has awarded non-acute care medical-surgical distribution contracts to ten distributors.

"Novation is focused on providing non-acute alliance members with comprehensive health care solutions that provide a competitive advantage and significant value," said Dena Kitchens, portfolio executive, non-acute program at Novation. "Novation's awarded non-acute distributors have the expertise needed within their awarded classes of trade to service the diverse needs of VHA, UHC and Healthcare Purchasing Partners International (HPPI) non-acute members."

Novation contracts with non-acute care distributors to provide distribution services to physician, ambulatory care, home health and long term care members of VHA, UHC and HPPI. The agreements are effective now through March 31, 2012 and cover distribution services for a broad range of medical-surgical products. The following is a list of the Novation non-acute care awarded distributors and the classes of trade they serve:

      Distributor                      Category

Activus Healthcare            Physician, Ambulatory Care,
 Solutions                     Long Term Care

Cardinal Health               Physician, Ambulatory Care

Gulf South Medical Supply     Long Term Care, Home Healthcare,
                               Home Healthcare-Patient Specific

Home Health Care Solutions    Home Healthcare-Patient Specific

RGH Enterprises               Long Term Care, Home Healthcare,
 (Independence                 Home Healthcare-Patient Specific
 Medical/Edgepark Surgical)

Kreisers, Inc.                Physician, Ambulatory Care,
                               Home Healthcare

McKesson Corporation          Physician, Ambulatory Care

Medical Specialties           Long Term Care, Home Healthcare,
                               Home Healthcare-Patient Specific

National Distribution and     Physician, Ambulatory Care, Long
 Contracting (and              Term Care, Home Healthcare
 participating dealers)

Physician Sales and           Physician, Ambulatory Care
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 $30 billion in supplies in 2006.

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