SOURCE: Novation

May 04, 2006 13:30 ET

Novation Plasma Program Adds New Allocation & Enrollment Tool

Online Tool Simplifies Allocation Process for Members

IRVING, TX -- (MARKET WIRE) -- May 4, 2006 -- Novation LLC, the health care contracting services company of VHA and University HealthSystem Consortium (UHC), has added a new allocation and enrollment tool to its plasma program to simplify the allocation process for members.

The new tool will enable participating members to:

--  View and update current allocations and/or distributor selections.
--  View monthly year-to-date average of intravenous immune globulin
    (IVIG) grams and albumin units, instantly, without going through a Novation
    representative.  Requested allocation and/or distributor changes are
    instantly communicated to the corresponding suppliers and distributors,
    allowing improved product shipment determination.
--  Greatly reduce the time it takes to complete the program's annual
    needs assessment. The process typically takes a few months, but using the
    tool it now takes approximately a month and a half to complete.
--  Receive the following year's allocations earlier than in previous
--  Use the automated enrollment feature to submit plasma program
    enrollment information.
--  Update contact information to ensure receipt of program
"Novation's investment in this technology to support members is another example that illustrates why Novation's Plasma Program is the leading program of its kind in the industry," stated William Woodward, MS, RPH, director of contract and program services for Novation's Plasma Program. "This technology will streamline the annual needs assessments and provide an easy way for members to request allocation and distributor changes."

Novation contracts for fractionated products derived from human plasma. Products include IVIG, albumin, antihemophilic factors, hyper-immune globulins, and surgical fibrin sealants.

Novation's Plasma Program was the first in the industry and has provided unmatched value to VHA and UHC members since 1989. Launched under the health care alliances, Novation's plasma program currently serves over 1240 members. Since its inception, the program has ensured members exceptional pricing and availability for products covered under the program.

Program participants purchased nearly seven million grams of IVIG in 2005, up over 28 percent from 2004. Through the Novation Plasma Program, participants typically receive significant savings vs. pricing available on the open market.

VHA, UHC and Healthcare Purchasing Partners International (HPPI) members will purchase nearly $600 million in plasma products in 2006 saving $120 to $600 million over general open market pricing.

About Novation

Based in Irving, Texas, Novation is the leading health care contracting services company, delivering unmatched savings and value to nearly 3,000 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 700 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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