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Devices Group Purchasing

 News Release - January 4, 2007

Novation Announces New Anesthesia Standardization Program

Signs 25 Anesthesia Agreements

IRVING, TX--(Healthcare Sales & Marketing Network)--Jan 4, 2007 -- Novation launched its new Anesthesia Standardization Program for acute care members on Jan. 1, 2007. The program has similar categories and flexibility as the old program which expired at the end of 2006.

The new program provides incentives averaging more than five percent on purchases within the portfolio, increased cooperative returns for participating members and additional savings from standardization and utilization.

"The new Anesthesia Program offers members greater returns for participation and offers enhanced supplier choices," said Kathy Harlan, senior director, standardization program at Novation. "Overall member feedback on the changes with the new program has been favorable."

The program is comprised of nine product categories: air warming, central venous catheters (CVSs) non-tunneled, anesthesia masks, anesthesia circuits, endotracheal (ET) tubes, fluid warming, laryngeal mask airways, thermodilution catheters and transducers. Participating suppliers include Ambu, Arrow, Cincinnati Sub-Zero, Edwards, Gaymar, Hospira, Medline, Smiths, Tyco, and Vital Signs.

Subsequently, Novation awarded 25 new anesthesia contracts in multiple product categories. The agreements, which began on Jan. 1, 2007, unless otherwise noted, run through Dec. 31, 2009. Many of the new anesthesia contracts are in the new Anesthesia Standardization program. The program categories and companies are as follows: 
  PROGRAM PRODUCT CATEGORIES                 SUPPLIER(S)++
------------------------------   -------------------------------------
Air warming *                    Cincinnati Sub-Zero
                                  (Agreement awarded through Novation's
                                   Supplier Diversity program)
                                 Gaymar Industries
                                 NOVAPLUS®/Arizant Healthcare Inc.
Anesthesia circuits              Medline
                                 Smiths
                                 Vital Signs
Anesthesia masks*                Medline
                                 NOVAPLUS®/Smiths
Central venous catheters (CVCs)  Arrow
 non-tunneled                     (effective Nov. 1, 2006 - Oct. 31, 2009)
Endotracheal (ET) tubes*         NOVAPLUS®/Teleflex/Hudson RCI
                                 Tyco/Nellcor
Fluid warming *                  Gaymar
                                 NOVAPLUS®/Arizant Healthcare Inc.
                                 Smiths
Laryngeal mask airways *         Ambu
                                 NOVAPLUS®/LMA
Thermodilution catheters         Edwards
                                 Hospira
Transducers                      Hospira


++ Participant must select one supplier per category to which to standardize product purchases.
* For these categories and contracts, both NOVAPLUS-labeled and manufacturer-labeled products are included in the standardization program. Additional anesthesia agreements were signed, however they are not a part of the Anesthesia Standardization Program. The agreements include: 
             PRODUCT CATEGORIES                SUPPLIER(S)
-------------------------------------------   -------------
Central venous catheters (CVC) non-tunneled   Edwards
In-line blood sampling devices                Edwards
                                              Hospira
Temperature monitoring probes                 Smiths
Tracheostomy tubes                            Smiths
                                              Tyco/Nellcor
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

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

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