OVERVIEW

Novation was established Jan. 1, 1998, when VHA Inc. and University HealthSystem Consortium (UHC), two national health care alliances, consolidated their supply-contracting functions. Based in Irving, Texas, Novation acts as the supply contracting company for nearly 25,000 VHA and UHC member organizations to help them manage and reduce supply costs.

The health care markets served by Novation include acute hospitals and systems, academic medical centers, ambulatory care and physician clinics, home health and long-term care facilities.

Novation also provides supply contracting services to thousands of health care, education, municipalities and corporate members of Provista, a supply chain improvement company jointly owned by VHA and UHC, to serve health care organizations that are not members of either alliance, as well as non-health care markets.

Novation delivers unmatched supply savings and value through contract and price management and spend management services.

Through its affiliations with VHA, UHC and Provista, Novation represents the largest purchasing volume in the industry with:

• $37.8 billion in annual purchases
• 40 percent of the staffed beds in the United States
• 45 percent of the nation’s admissions
• 47 percent of nation’s total surgeries

Novation has the broadest, most comprehensive contract portfolio in the industry, maintaining agreements with more than 600 suppliers and distributors to provide exceptional choice and value. These agreements encompass nearly 90 percent of the products that health care organizations purchase.

By applying data-driven contracting decisions in daily operations, Novation can define, monitor and enforce pricing on members’ behalf throughout all phases of a contract’s life cycle using price management strategies that focus on contract and supplier performance. The result is that members receive access to market-leading pricing and suppliers receive volume and commitment in return for their collaborative efforts.

Novation also uses its expertise and experience to create innovative programs designed to deliver additional value to members and suppliers alike beyond its national portfolio. These programs include the NOVAPLUS® private label, pharmacy, standardization, group buys, environmentally preferred purchasing, nonacute, new medical technology and supplier diversity.

To ensure that we’re meeting the needs of those we serve, Novation employs a high-integrity, competitive contract process that follows the principles of the ABA Model Procurement Code and involves participating member organizations to the greatest practical degree. Novation gathers member input through various member councils and task forces, as well as market research surveys.

Novation awards agreements to suppliers that provide the best-quality products and demonstrate broad-based clinical acceptability at the optimal total value for members. To assure that contracts have the strongest terms and conditions in place, all supplier proposals are assessed based on qualitative and quantitative evaluation factors agreed to by members during the contracting process.