NEWS RELEASE

Novation’s Orthopedic Portfolio Offers Members Access to Top Spine Suppliers and Advanced Technology

Spine Agreements Save Members More Than $39 Million in Two Years

IRVING, TX; March 27, 2008 — Novation, the health care industry’s leading contracting services company of VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances, offers members access to top spine suppliers and leading-edge technology through comprehensive agreements. Spine agreements are effective through Nov. 14, 2008 offering members a savings of more than $39 million in two years and as much as $59 million in total savings in three years.

“Novation’s spine offering adds dynamic stabilization to its orthopedic portfolio, which allows the surgeon to preserve much of the spinal anatomy and use a wide range of minimally invasive techniques on patients, including those with acute and chronic instabilities caused by degenerative changes in the vertebra discs,” said Scott Crandall, senior director at Novation. “Members are not only saving money but are able to offer the latest techniques to patients in order to improve outcomes.”

The Novation agreements provide access to the following spine technologies: CHARITÉ® artificial disc, lumbar disk arthroplasty, PRESTIGE® cervical disc, and bone morphogenetic proteins (bmp) INFUSE™ offered through two suppliers, Medtronic and DePuy.

Novation is the only group purchasing organization that has a national agreement with DePuy for spinal products. The contract offers locally negotiated pricing to meet member’s unique needs, including access to CHARITÉ®, the first and most clinically tested total disc replacement in the world, during the term of the agreements. Lumbar disk arthroplasty is currently available with DePuy and will later be available with Medtronic per Food and Drug Administration release in late 2008. Members can realize more than $13 million in savings through Novation’s DePuy spine contracts.

Through another agreement with Medtronic, members will have access to INFUSE™, which is used for patients undergoing multiple level fusions and those who are less likely to fuse because of existing medical problems. Medtronic will also be offering members’ access to the new PRESTIGE® cervical disc, which offers patients with conditions related to degenerative cervical disc disease an alternative to spinal fusion surgery and is designed to increase motion. Members can realize more than $46 million in savings through Novation’s Medtronic spine contracts.

“The spinal industry is expected to grow along with the demand for new and improved products for hospitals over the next few years,” adds Crandall. “Novation’s spine agreements offer members exclusive access to spine products at an overall lower cost.”

Novation has already begun collecting supplier registrations through the bid calendar on novationco.com and will be accepting bids for new spine contracts from January 28 through February 15, 2008. Novation’s current spine agreements include the following products:

* Products that are available to VHA and UHC Members but are not included on the Novation National Agreement.

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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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