SOURCE: VHA Inc.

March 06, 2012 12:35 ET

Supply & Demand Chain Executive Names Scott Downing and Jody Hatcher "Pros to Know"

VHA Inc. and Novation Leaders Recognized for Supply Chain Leadership and Innovation

IRVING, TX--(Marketwire - Mar 6, 2012) - Supply & Demand Chain Executive magazine has named Scott Downing, executive vice president and chief sales and marketing officer at VHA Inc., and Jody Hatcher, president and CEO of Novation, as recipients of its 12th annual "Pros to Know" practitioner award.

This prestigious annual award recognizes outstanding supply chain executives who employ innovative strategies and tactics that support the acceptance of the supply chain as a strategic differentiator. Downing and Hatcher have been instrumental in creating and executing key strategies that enable members of VHA Inc., the national health care network, to prepare and meet challenges brought about by the economy and impending health care reform mandates.

"The supply chain affects almost every aspect of a hospital's enterprise and is integral to its ability to perform efficiently," said Downing. "I'm honored to be recognized and to share this distinction with Jody Hatcher, and I believe it gives credit to the good work that both VHA and Novation are doing, separately and together, to move supply chain improvements forward rapidly so hospitals and health systems successfully meet changing industry demands."

Downing maintains an unwavering focus on the capability of the health care supply chain to deliver value to members. Pioneering the development of VHA LYNX™, VHA's industry-leading suite of analytics offerings, Downing's strategic perspectives help hospitals gain improved visibility and transparency into their supply chains, so they can better understand, control and leverage their purchasing, vendor pricing and negotiating power and benchmark their supply chain performance against both their peers and other health care organizations. Importantly, these supply-chain benefits allow hospitals to more easily transition from a fee-for-service to a pay-for-performance model.

At Mid-America Services Solutions, LLC, a regional 70-organization VHA SupplyNetwork™ Downing also championed the development of a fully automated, 98,000-item, 150 product-category supply chain order system with a 98% accuracy rate. Virtually without human intervention, this GS1-compliant system processes the orders, validates the price, authenticates shipping and automates other order-related tasks. By significantly reducing the order processing and incorrect order reprocessing time, this exclusive system has improved the organizations' patient care capabilities by ensuring that important medical products are available when and where they are needed.

"The challenges facing the provider community are more sweeping and dramatic than we've seen in decades," says Hatcher. "Providers are hungry for innovative ideas to help them reduce costs, and we are leading the way in providing those innovations to the members we serve. The investments we've made over the past year in data and analytics are transforming how members access, evaluate and purchase the products they need. Today, members are able to identify strategic cost savings opportunities like never before."

Novation is the health care industry's leading supply contracting company for the members of VHA, UHC and Provista.

Hatcher has dedicated his career to helping hospitals lower their supply costs through innovative and relevant solutions. For example, as Novation's president, he spearheaded the investment of $40 million into Novation's data and analytics capabilities. As a result, Novation has developed the industry's most sophisticated approach to price management and price leadership. With Hatcher's guidance, Novation is using these tools to transform the health care supply chain into a buyer-centric marketplace by giving member hospitals unprecedented visibility into market pricing, consequently lowering their supply costs.

Additionally, under Hatcher's leadership, Novation has seen record-breaking member savings and member participation. Since 2009, Novation has provided almost $700 million in savings for all of the members Novation serves. And, last year Novation achieved the highest member participation in its programmatic offerings that help members with standardization, utilization and cost reduction efforts. In 2011, the members served by Novation purchased more than $20.5 billion through Novation's committed, standardization, private label and pharmacy programs alone.

About VHA Inc.
Based in Irving, TX, VHA Inc. is a national network of not-for-profit health care organizations that work together to drive maximum savings in the supply chain arena, set new levels of clinical performance, and identify and implement best practices to improve operational efficiency and clinical outcomes. Since 1977, VHA has leveraged its expertise in analytics, contracting, consulting and networks to help members achieve their operational, clinical and financial objectives. In 2010, VHA delivered record savings and value of $1.7 billion to members. VHA serves more than 1,350 hospitals and more than 30,000 non-acute care providers nationwide, coordinating delivery of its programs and services through its 15 regional offices. VHA has been ranked as one of the best places to work in healthcare by Modern Healthcare since the publication introduced this list in 2008.

About Novation, Winner of the Ethics Inside® Certification
Founded in 1998, Novation is the leading health care supply contracting company for the more than 65,000 members of VHA Inc. and UHC, two national health care alliances, and Provista, LLC. Novation provides alliance members with sourcing services, as well as information and data services. Based in Irving, Texas, Novation develops and manages competitive contracts with more than 600 suppliers. VHA, UHC, and Provista members used Novation contracts to purchase more than $40 billion in 2011. Novation recently earned the coveted Ethics Inside® Certification from Ethisphere Institute, a leading international think tank dedicated to the research and promotion of best practices in corporate ethics and compliance, and is the only health care group purchasing organization to earn this distinction.

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