SOURCE: VHA

February 03, 2011 12:00 ET

VHA Acquires Provista, Expands Reach Into Non-Acute Health Care Market

Transaction to Bring Increased Value for Non-Acute Care Providers

IRVING, TX--(Marketwire - February 3, 2011) - VHA Inc., the national health care network, announced today that it has purchased the University HealthSystem Consortium's minority interest in Provista, one of the country's leading supply chain improvement companies. 

The transaction, which became effective at the end of 2010, provides VHA the ability through Provista to increase its focus on the rapidly-growing non-acute health care market and expand its reach into the non-health care market. Provista will now serve more than 64,000 sites that purchase approximately $9 billion in supplies annually. 

"Provista is poised to more aggressively target the fragmented and expanding non-acute care market, deliver greater value to our current members and develop innovative solutions that will benefit our entire membership," said Eldon Petersen, president of Provista. "Provista will also continue to target and serve the acute care market, as well as the education, hospitality and corporate markets and offer solutions that drive financial and operational improvements."

VHA and UHC formed Provista in 1998 and have shared ownership and control of the company since then. Through this transaction, Provista will operate a wholly-owned subsidiary of VHA and will be the GPO with the largest share of the non-acute care market. 

VHA Inc., based in Irving, Texas, 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. In 2009, VHA delivered record savings and value of $1.47 billion to members. Formed in 1977, VHA serves 1,400 hospitals and more than 30,000 non-acute care providers nationwide, coordinating delivery of its programs and services through its 16 regional offices. VHA has been listed as one of the best places to work in health care by Modern Healthcare since 2008 and one of the best places to work in IT by Computer World since 2007.

Based in Irving, Texas, Provista is a leading supply chain improvement company dedicated to strengthening financial and operational performance for its 64,000 sites in the health care, education, hospitality and corporate markets nationwide. Together, Provista and its supply contracting company, Novation, leverage more than $38 billion in annual purchases to provide members with the most competitive, extensive portfolio of products, services and solutions available. Provista is owned by VHA Inc.

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