NEWS RELEASE

Novation Announces Winners of 2008 Bob Majors Memorial Scholarship

Dale Montgomery and James Shepherd Recognized as Leaders in Materials Management, Awarded $2,500 to Grow Industry Knowledge

IRVING, TX; December 3, 2007 — Novation, the health care industry’s leading contracting services company of VHA Inc. and the University HealthSystem Consortium (UHC), today announced the winners of the first Bob Majors Memorial Scholarship. Novation established the scholarship to honor Robert “Bob” Majors, a former director of materials management and alliance member who passed away in January 2007.

Dale Montgomery, vice president of support services at VHA-member Hays Medical Center in Hays, Kan., and James Shepherd, director of materials at UHC-member University of New Mexico Health Sciences Center and Hospitals in Albuquerque. N.M. were both recognized with this honor. Each will receive a $2,500 scholarship to attend a 2008 materials management-related conference or leadership education opportunity. The scholarship is only open to VHA and UHC alliance members.

“I would like to congratulate Dale and James for being chosen for this award,” said Joellyn Willis, president at Novation. “Both exemplify characteristics that Bob Majors was known for – a love of materials management and a commitment to continuous learning. We hope that they too can help foster a passion for learning in others, as well.”

Montgomery has worked in health care for more than 40 years. He began his career as an orderly at the Hays Medical Center where he also worked as a physical therapy technician before assuming responsibility for the purchasing department. An interest in business and a passion for affecting patient care – he found materials management a great career choice.

“I knew Bob Majors well and I really respected his work ethic and his opinions. To be named the first VHA recipient of this award is very humbling to me,” said Montgomery. “I share this award with all those people I’ve worked with throughout my career, including those with Novation and VHA, and feel that these relationships are invaluable to my success in supply chain.”

Shepherd “fell into” materials management more than 40 years ago. He has worked in the hospital industry for eight years, which he finds rewarding because he enjoys his career and the sense of community service that his job offers.

“The hospital industry offers an opportunity to use skills that while they are not clinical, still serve the community – there’s a great deal of satisfaction in this,” Shepherd said. “The health care industry needs more talented individuals to help keep supply costs down so funds can be used for clinical care. I’m very thankful to Novation and UHC for the honor and will be attending a conference I wouldn’t be able to attend otherwise.”

The Bob Majors scholarship, awarded annually, was established to honor Majors’ commitment to learning, his many contributions to health care supply chain management and his unwavering support of Novation, VHA and UHC.

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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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