NEWS RELEASE

Annual Novation Bariatric Report Shows Hospitals Continue to Face Challenges Offering Quality Care for Obese Patients

Admissions rise by 20 Percent

IRVING, TX; April 8, 2008 — Novation, the leading health care contracting services company of VHA Inc., University HealthSystem Consortium (UHC) and Provista, LLC, announced today the results of its annual bariatric report. The fifth annual nationwide survey of VHA and UHC hospitals confirms that caring for obese patients continues to challenge hospital staff as they experience escalating costs, increases in worker injuries and higher admissions of obese patients. 20 percent of respondents saw a significant increase in admissions of obese patients, while 52 percent saw a slight increase. Hospitals said they are meeting this challenge with costly renovations in all areas of their facilities, purchasing specialized equipment and offering training focused on this patient population.

The survey queried directors of materials management and surgical services at member hospitals to study how they are responding to the increasing need for specialized equipment, facilities and supplies to properly care for obese patients.

“When we looked at the trends over the last five years the biggest 'WOW' was the rising cost of treating obese patients. From 2007 to 2008 the cost to treat patients jumped nearly $50,000,” said Joan Roberts, senior director , at Novation. “The percentage of hospitals that have seen costs rise went from 24 percent in 2003 to 68 percent in 2008. This year the median cost to treat obese patients was nearly $83,000.”

When asked if they have invested in physical renovations to accommodate obese patients, 28 percent of respondents said they have had to renovate in all areas of the hospital. The most common renovations included replacing wall hung toilets with floor mounted, increasing doorway size and/or adding complete bariatric suites. Two items on the wish list of many hospitals were seating for patient rooms and whirlpool/soaking tubs.

In addition to investing in physical renovations, hospitals are being compelled to purchase larger-sized supplies throughout the hospital to provide quality care for obese patients. Some of the supplies reported being purchased over the last 5 years include: larger beds, scales, gowns in some cases size 8x, slippers, longer needles, larger diapers, longer surgical gloves, larger SCP sleeves and one hospital reported needing a 1,000 pound surgery.

Hospitals reported that training is a significant focus for the care of obese patients. 85 percent of responding facilities offered training for their staff regarding special procedures to take care of these patients. The number of facilities who offer training has remained at nearly 85 percent for the last 4 surveys, in 2003 only 40 percent of the hospitals offered specialized training. The training focused primarily on moving patients and the proper use of new equipment.

38 percent of responding facilities reported an increase in workplace injuries related to caring for obese patients, a slight increase over 2007. Nearly 60 percent reported a decrease in injuries as a result of purchasing appropriate equipment and offering training.

“As in the previous 4 bariatric reports, the 2008 report supports the trend that treating obese patients is a major challenge for hospitals and health care professionals,” said Roberts. “Currently, Novation offers a complete portfolio of the most widely used bariatric products in its bariatric portfolio to support the members.”

2008 Bariatric Survey Results >

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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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