Healthcare Industry News:  infusion therapy 

Devices Group Purchasing

 News Release - October 12, 2006

Health Alliance Of Greater Cincinnati Announces Agreement With Hospira to Replace Entire Fleet of Intravenous (I.V.) Pumps Across Seven Hospitals

Scalable drug library platform helps maximize patient safety, clinical performance

CINCINNATI and LAKE FOREST, Ill., Oct. 12 (HSMN NewsFeed) -- The Health Alliance of Greater Cincinnati, the largest integrated delivery network in southwest Ohio, today announced an agreement with Hospira (NYSE: HSP ) to purchase Plum A+® infusion devices with the wireless Hospira MedNet® system for intravenous (I.V.) drug delivery for its seven hospital facilities and planned West Chester, Ohio, hospital. The deal represents one of the largest clinical equipment purchases in the Health Alliance's 11-year history; a significant placement for Hospira, a leading global hospital products company; and a first for the health care industry using an electronic real- time bidding process called a reverse auction coordinated by group purchasing organization Broadlane.

Rather than phasing in the new technology over several years at its hospitals, the Health Alliance is choosing to replace all I.V. pumps across its seven locations during the next year with the Hospira infusion devices and customizable patient safety software to help improve overall quality and safety of I.V. administration. According to a study published in the Journal of the American Medical Association (JAMA), I.V. medications have been associated with 54 percent of potential adverse drug events, 56 percent of medication errors and almost 61 percent of the serious and life-threatening errors nationwide (Bates et al. 1995; 274:29-34). The use of wireless technology to help prevent I.V. drug errors is also strongly recommended by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) and patient advocacy groups.

"This purchase agreement is first and foremost about patient safety and quality of care," said Dennis Robb, senior vice president of supply chain management for the Health Alliance. "That's why we engaged nurses, pharmacists, physicians, bio-engineers and information technology specialists from each hospital to review and select the product that met the end-user's criteria for high quality, safe delivery of I.V. medications."

About the Scalable Hospira MedNet System

Hospira MedNet software is designed to facilitate the development, distribution and documentation of hospital-specific medication dosing best practices at the patient bedside. It is programmable and customizable software that has been enhanced to store up to 2,700 I.V. drug and fluid names in a hospital-defined drug library, while providing area-specific limits for up to 18 clinical care areas.

The wireless version of the Hospira MedNet system works with other hospital technologies to establish real-time send-and-receive capability and link to the hospital information system network, providing easier access to drug dosing information and hospital-wide reporting. This two-way communication means infusions can be more conveniently monitored, and infusion data can be accessed and transferred immediately, helping:

-- reduce medication errors,
-- enhance quality of patient care,
-- assist with continuous quality improvement efforts,
-- improve clinical workflow, and
-- support caregiver confidence and productivity.

The Plum A+ infusion therapy pump is used for electronic control of I.V. medication administration. The device helps hospital staff intercept and prevent errors through a therapy confirmation screen and a dose calculator. The screen requires a clinician to review and confirm drug, dose, concentration and weight before infusion begins; and the calculator defaults to recommended units of concentration for the selected drugs.

"Hospira offers solutions that integrate wireless technology with innovative medical devices, and we are excited to partner with the Health Alliance on their leading effort to advance patient safety and improve hospital productivity," said John Arnott, senior vice president, Global Commercial Operations, Hospira.

About the Bidding Process

The purchasing process incorporated the health care industry's first-ever live reverse auction for I.V. pump sets, coordinated by Broadlane. The process included all leading I.V. pump suppliers vying for selection as the exclusive vendor for the Health Alliance. Unlike the more common auction, this model allowed vendors or sellers to electronically bid against each other in real time for the buyer's purchases.

Broadlane used its proprietary pre-committed contracting approach to source the Health Alliance's purchase volume and help determine which qualified vendor best met the bid requirements with the strongest overall value. Broadlane provided the market and product analysis, trained the participants, and conducted the event, with the final award decision made by the Health Alliance based on objective criteria.

"This event further cements Broadlane's emergence as the leader in using Web-based sourcing (e-Sourcing) capabilities in the health care industry," said Linda Day, Broadlane's executive vice president for contracting services.

About the Health Alliance

The Health Alliance is an integrated health care delivery system that includes The Christ Hospital, The University Hospital, The St. Luke Hospitals, The Jewish Hospital, Fort Hamilton Hospital, Drake Center, West Chester Medical Center and the physicians of Alliance Primary Care. To view other Health Alliance news releases, go to www.health-alliance.com/pressroom.

About Hospira

Hospira, Inc. is a global specialty pharmaceutical and medication delivery company dedicated to Advancing Wellness(TM) by developing, manufacturing and marketing products that help improve the productivity, safety and efficacy of patient care. With 70 years of service to the hospital industry, Hospira's portfolio includes one of the industry's broadest lines of generic acute-care injectables, which help address the high cost of proprietary pharmaceuticals; integrated solutions for medication management and infusion therapy; and the leading U.S. injectable contract manufacturing business. Headquartered north of Chicago in Lake Forest, Ill., Hospira has approximately 13,000 employees and 14 manufacturing facilities worldwide. Hospira's news releases and other information can be found at www.hospira.com.

About Broadlane

Through a comprehensive set of services focused on contracting, purchasing, clinical and pharmacy cost management, labor, capital equipment and information management, Broadlane helps providers go further to reduce costs and improve financial performance.

Broadlane is known for superior and verifiable cost savings, deep clinical and operational expertise and technology that enables more effective spend management. Together, these capabilities help providers rapidly achieve industry-best procurement practices.

Broadlane serves thousands of acute care hospitals, sub-acute care facilities and physician practices across the country. The company has offices in California, New York, Ohio and Texas. For more information, visit www.broadlane.com.


Source: Hospira

Issuer of this News Release is solely responsible for its content.
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