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Healthcare Industry News:   computer-aided detection 

Devices Radiology Group Purchasing

 News Release - January 13, 2006

Novation Awards Contract to Riverain Medical

IRVING, TX--(Healthcare Sales & Marketing Network)--Jan 13, 2006 -- Novation, the health care contracting services company for VHA Inc. and the University HealthSystem Consortium (UHC), has awarded a contract to Riverain Medical for chest radiograph computer aided detection (CAD) systems. The agreement began on Jan. 1, 2006 and runs through Dec. 31, 2007.

The agreement was awarded through Novation's technology evaluation process. After careful review of the product and supporting documentation, Novation's Diagnostic Imaging Council determined that Riverain's CAD systems were unique and therefore the award was not competively bid.

Riverain Medical offers the only U.S. Food and Drug Administration-approved chest radiograph CAD system capable of assisting in the detection of early-stage lung cancer.

"Novation is committed to ensuring that VHA and UHC members that purchase new and potentially innovative health care technology will find value and cost savings because of the contracts awarded for products such as the Riverain Medical CAD system," said Cathy Denning, senior director, contract and program services, at Novation.

The agreement includes the following products: RapidScreenŽ RS-2000 (analog), RapidScreen RS-2000 A-D, RapidScreen RS-2000D (digital), options and accessories, and service agreements.

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 2,500 members and affiliates of VHA and UHC. These organizations used Novation contracts to purchase more than $23 billion in supplies in 2004.

About Riverain Medical

Riverain Medical is dedicated to developing computer-aided detection (CAD) systems, medical imaging software solutions, and information services applications for the medical community. Riverain's initial products are focused on early-stage detection of lung cancer, with plans to build upon this base and develop detection systems for additional diseases and radiology devices.

Source: Novation

Issuer of this News Release is solely responsible for its content.
Please address inquiries directly to the issuing company.

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