Healthcare Industry News:   Novation 

Devices Group Purchasing

 News Release - September 11, 2006

Novation Launches Capital Equipment Group Buy to Help Alliance Members With Planning and Purchasing of OR and Central Sterile Equipment

IRVING, TX--(Healthcare Sales & Marketing Network)--Sep 11, 2006 -- Capital planning and purchasing can present complex financial and planning challenges for health care organizations, but Novation, the health care contracting services company of VHA Inc. and the University HealthSystem Consortium (UHC), can help alliance members simplify the process through its capital equipment group buy program.

Capital purchases represent approximately 25 percent of a hospital's budget and Novation's easily accessible capital equipment group buy program provides members with additional savings on existing contract pricing for major equipment purchases. Novation works with suppliers to develop timely group buy offerings that provide additional savings beyond Novation's contract price.

Novation has launched a national group buy for operating room and central sterile capital equipment effective September 1 through November 30, 2006. Early access began on August 15. The capital equipment group buy includes the following equipment and products:
Product                                          Supplier

Anesthesia machines*                           GE Healthcare
Patient monitoring*
Cardiovascular                                 Siemens
Low-temperature sterilization (System 1)       Steris
OR consoles, sinks and cabinets                Steris
OR lights, columns and booms                   Steris
OR tables                                      Steris
Steam sterilizers                              Steris
Warming cabinets                               Steris
Washers/decontamination                        Steris
*The group buy for these products is effective August 15 through November 15

"This is a new category of equipment for the Novation National Group Buy Program," said Denise Rubin, senior director, capital, food and facilities at Novation. "The buys include exceptional pricing and value that was verified through non-biased, third party sources. The value related to relatively small volume purchases in the OR and Central Sterile categories are typical of a much larger construction project purchase. No formal commitment is required and VHA and UHC members do not need to commit to purchase additional STERIS products."

Novation will manage the capital equipment group buy process with contracted suppliers to facilitate completion of paperwork and to administer member satisfaction surveys of the group buy process.

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 Health System Consortium (UHC), two national health care alliances. Through its public 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 innovative 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 and UHC members used Novation's contracts to purchase more than $25 billion in supplies in 2005.

Source: Novation

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