NEWS RELEASE

Novation Awards Contracts for Trauma Products

Agreements Provide Savings for VHA & UHC Members on Physician Preference Products

IRVING, TX; November 28, 2006 — Novation has awarded dual-source awards for trauma products to Smith & Nephew and Synthes. The contracts are effective Dec. 1, 2006 and run through Nov. 30, 2009. Novation awarded the contracts through its public competitive bid process, with input from its member-based Orthopedic Council.

Trauma implants and devices are used by orthopedic surgeons to repair injuries to bones and soft tissues. The new agreements offer a complete line of physician preference trauma products and the flexibility to offer custom solutions to meet VHA Inc. and University HealthSystem Consortium (UHC) member needs. The new Novation agreements include internal fixation products (plates, screws and nail systems) and external fixation products (AO Bilateral Fixators, Jet-X Fixators, and Circular Hybrid Rings).

Member savings will depend on product mix and purchase volume. VHA and UHC members’ savings will range from $250,000 to $1 million during the three-year term of the agreement if conversions are applied. Agreement pricing provides on average five to 10 percent savings over the previous Smith & Nephew contract and one to two percent savings over the previous Synthes agreement depending on product mix.

###

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.

< Back

Print This Page