SOURCE: Novation

March 31, 2005 10:25 ET

Novation Signs Multi-Source Agreements for Pnuematic Compression Products

IRVING, TX -- (MARKET WIRE) -- March 31, 2005 -- Novation, the supply company of VHA Inc. and the University HealthSystem Consortium, has signed agreements with five suppliers for pneumatic compression products, equipment and accessories. The agreements take effect on April 1 and run through March 31, 2008. The agreements were signed based on Novation's bid process and input from the Novation Nursing and Clinical Practice Council, which includes clinicians from member hospitals. Their decision measured both financial and non-financial criteria, such as breadth and depth of product line, clinical acceptability/performance, and service.

The Novation member council recommended agreements with Aircast, Currie Medical Specialties, Huntleigh Healthcare, Compression Therapy Concepts and Tyco Healthcare/Kendall. Compression Therapy Concepts, as a certified women-owned business, was signed through Novation's Supplier Diversity Program.

Collectively, these agreements are expected to generate an estimated $66 million in annual sales for the contracted suppliers and $5.2 million in annual savings for VHA and UHC members as a result of the new market-leading contract pricing.

"These agreements are an example of Novation's efforts to provide the best available purchasing options to members in an evolving product category, and to work with women- and minority-owned businesses," according to Eldon Petersen, group senior vice president at Novation.

The new agreements also extend to health care organizations that purchase supplies through HealthCare Purchasing Partners International™, a company that markets Novation purchasing agreements to non-members of VHA and UHC.

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 2,300 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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