NEWS RELEASE

Novation’s Bariatric Product Portfolio Helps Hospitals Handle Bariatric Needs, Reduce Worker Injuries

IRVING, TX; February 8, 2006 — In its third nationwide survey of VHA Inc. and University HealthSystem Consortium (UHC) member hospitals, Novation says hospitals are becoming better equipped to handle the needs of obese patients. Novation LLC, the health care contracting services company of VHA and UHC, reports thirty eight percent of VHA and UHC member hospitals have purchased new categories of supplies for the treatment of obese patients and fifty one percent have seen a decrease in workplace injuries as a result of purchasing equipment or offering training programs.

“Providing the right supplies for these patients is essential for quality care. Additionally, staff can better attend to patients’ needs while maintaining their own health when using proper ergonomics and the right equipment,” said Sandy Wise, RN, MBA, senior director of medical and surgical services at Novation.

The survey showed that 64 percent of respondents have seen an increase in admissions of severely obese patients and this trend has remained high for the last three years. Hospital surgery and emergency departments see and or treat more obese patients than any other hospital departments. With the rapidly growing rate of obesity, hospitals have experienced spiraling costs along with the need for new equipment, supplies and training to properly care for this population.

“Three years ago, Novation identified a need and developed a comprehensive bariatric program that provides hospitals with an extensive product catalog, resources for training staff in proper lifting and transferring techniques, sensitivity training, room configurations and other member success stories,” said Wise. “Novation helps VHA and UHC members access information and save money on bariatric-related supplies and resources.”

The Centers for Disease Control estimates that obesity-related medical costs in the United States reaches a total of $75 billion annually. The median total spend on expenses related to the treatment of severely obese patients by member hospitals in 2005 was $50,000. However, bariatric surgery programs represented a net profit on the hospital’s bottom line for 59 percent of respondents.

Conducted by Novation, the survey of VHA and UHC members queried 561 directors of materials management and directors of surgical services across the country to determine the influence that treating severely obese patients (more than 100 pounds overweight) had on hospitals in 2005. Eighty-seven health care professionals, or 16 percent, responded.

“We are continually seeing an increase in the number of obese patients presenting to hospitals. These patients are not necessarily surgical patients but present with a variety of medical needs and can be seen throughout a health care facility,” said Wise.

Currently, Novation offers more than 1,000 of the most-widely used bariatric products in its bariatric portfolio and will continue to research issues faced by hospitals to provide the most cost-effective ways to control costs in hospitals while still maintaining a high level of care.

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About Novation
Founded in 1998, Irving, Texas-based, 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 12,000 members of Provista, LLC. Through its competitive contracting process, Novation develops and manages contracts with more than 500 suppliers. 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 contracts to purchase more than $33.1 billion in 2007.

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