NEWS RELEASE
Novation Awards Contracts to Seven Pharmaceutical Distributors
Over $10 Billion in Annual Pharmacy Purchases Covered by New Contracts
IRVING, TX; June 8, 2006 — Novation, the health care contracting services company of VHA Inc. and University HealthSystem Consortium (UHC), has awarded contracts to seven pharmaceutical distributors. The multi-source agreements began on May 1, 2006 and run through April 30, 2011. The agreements were signed based on Novation’s public competitive bid process and input from the member surveys and member councils.
The new contracts cover over $10 billion in annual pharmacy purchases by VHA and UHC members, and will help create additional savings for members on distribution services. Over the full contract term, Novation estimates member pharmaceutical spend to exceed $100 billion.
“Novation’s pharmacy distribution contract terms and conditions are the best in the industry. The combination of our supply chain savvy and VHA and UHC members’ substantial purchase volume together drive the market’s highest real value for our health systems”, says Heather Paton, Novation Director Pharmacy Contract Management. The new Novation agreements include the following distributors: AmerisourceBergen, Burlington Drug, Cardinal Health, Dakota Drug, HD Smith, McKesson, and Morris & Dickson.
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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.
Media Contact
Kathryn Goldstein
Director, Public Relations
Novation
(972) 581-5529
kgoldste@novationco.com
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