Healthcare Industry News:  Cardinal Health 

Devices Group Purchasing

 News Release - November 28, 2007

Cardinal Health Signs Agreement with Novation for Presource(R) Custom Procedure Kits, Procedure Based Delivery Systems

DUBLIN, Ohio, Nov. 28 (HSMN NewsFeed) -- Cardinal Health, a global provider of products and services that improve the safety and productivity of health care, today announced a three-year dual source agreement with Novation, the industry's leading contracting services company, to provide Presource® custom procedure kits and Procedure Based Delivery System (PBDS(TM)) modules to the 11,500 hospital and surgery center members of the University HealthSystem Consortium (UHC), VHA and Provista.

Under the agreement, which is effective February 1, Cardinal Health will supply these customers with Presource® kits and PBDS(TM) modules for all areas within the acute care hospital and surgery center environment, including the operating room, labor and delivery, cardiac catheterization lab and interventional radiology lab.

Cardinal Health works collaboratively with health care customers to use the Presource® Process to assess unique procedure pack needs, design and deliver custom solutions to meet those needs and then measure results to adapt procedure pack solutions to address evolving requirements.

As part of this agreement, Cardinal Health will also use its recently introduced Preferred Choice Program(SM) to assist UHC, VHA and Provista members in improving product standardization and cost management. Through this program, Cardinal Health works with each customer to identify all products needed for a Presource® kit, and then recommends clinically equivalent options for those products. By providing high-clinical-quality product alternatives, this program helps customers to reduce supply costs while maintaining their focus on patient and practitioner safety.

"We look forward to expanding our relationship with Novation by providing procedure pack solutions to thousands of UHC, VHA and Provista hospitals and surgery centers, nationwide," said Steve Inacker, president and general manager of Cardinal Health's Presource® Products and Services business. "We're excited to deliver cost-effective solutions that will help Novation alliance members improve productivity and patient care."

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 HealthSystem Consortium (UHC), two national health care alliances and nearly 9,000 members of Provista, LLC (formerly known as Healthcare Purchasing Partners International, LLC (HPPI)). Through its 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 advanced 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, UHC and Provista members used Novation and alliance purchased services contracts to purchase $31.6 billion in 2006.

About Cardinal Health

Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH ) is an $87 billion, global company serving the health care industry with products and services that help hospitals, physician offices and pharmacies reduce costs, improve safety, productivity and profitability, and deliver better care to patients. With a focus on making supply chains more efficient, reducing hospital-acquired infections and breaking the cycle of harmful medication errors, Cardinal Health develops market-leading technologies, including Alaris® IV pumps, Pyxis® automated dispensing systems, MedMined(TM) infection surveillance services and the CareFusion(TM) patient identification system. The company also manufactures medical and surgical products and is one of the largest distributors of pharmaceuticals and medical supplies worldwide. Ranked No. 19 on the Fortune 500 and No. 1 in its sector on Fortune's ranking of Most Admired firms, Cardinal Health employs more than 40,000 people on five continents. More information about the company may be found at

Source: Cardinal Health

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