SOURCE: Novation

December 03, 2007 06:00 ET

Novation's Trauma Agreements Save Members $17 Million in One Year

3-Year Agreements Could Save Hospitals Nearly $51.5 Million

IRVING, TX--(Marketwire - December 3, 2007) - Novation, LLC, the health care industry's leading contracting services company of VHA Inc., and the University HealthSystem Consortium (UHC), two national health care alliances, offers alliance members rapid access to leading-edge technology used in trauma centers and hospital emergency departments. The trauma agreements are effective through Nov. 30, 2009, and have saved members more than $17 million in only one year. Over the 3-year term of the agreements, they could provide as much as $51.5 million in total savings.

"One way hospitals are attempting to address rising orthopedic costs is by working with their group purchasing organization to understand the advantages of pricing agreements with orthopedic manufacturers," said Scott Crandall, senior director at Novation. "Novation has captured agreements with leading manufacturers to bring state-of-the-art technology to alliance members faster and at a greater value."

Novation has national agreements with two suppliers for trauma products, Smith & Nephew and Synthes. Synthes is a leading orthopedic device manufacturer that specializes in trauma implants, which includes its popular locking plate system. Synthes' locking plate systems are known throughout the industry and include the Dynamic Compression Plate (DCP) and Locking Compression Plate (LCP) plate systems for bone stability and fusion. In addition, the agreement offers members access to the company's complete intramedullary (IM) nails and hip fixation devices.

Novation's agreement with Synthes offers conversion assistance for trauma inventory, lower commitment levels, increased discount and limited annual price increases. Members can realize more than $39 million in savings.

Through another agreement with Smith & Nephew, alliance members have access to all of its locking plate systems available, which include the popular PERI-LOC® systems and the TRIGEN® IM nail systems and all hip fixation devices. In addition, members have access to vendor buy back programs, a locally negotiated tier and price protection for 24 months, which can result in more than $12.5 million in savings.

"Novation's agreements with Synthes and Smith & Nephew enable us to extend our product offering within orthopedics to also meet the needs of trauma centers and hospital emergency departments, an important part of the U.S. orthopedic market," adds Crandall.

The trauma agreements include the following products:


Smith & Nephew     -- internal fixation products (screws and plate
                      systems, nail systems)
                   -- external fixation products

Synthes            -- internal fixation products (screws and plate
                      systems, nail systems)
                   -- external fixation products

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 HealthSystem Consortium (UHC), two national health care alliances and nearly 9,000 members of Provista, LLC (formerly known as Healthcare Purchasing Partners International, LLC (HPPI)). 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 advanced 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, UHC and Provista members used Novation and alliance purchased services contracts to purchase $31.6 billion in 2006.

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