NEWS RELEASE
Novation’s Failure-To-Supply Recovery Program Recoups More Than $1 Million for Members in Pharmacy Costs
IRVING, TX; September 11, 2008 — Each year millions of dollars are lost when healthcare providers are forced to pay a higher price for drugs because the lower priced product is unavailable. When the lower priced product is a Novation contract product, Novation works to recover the price difference for the pharmacy. Launched in December 2007, Novation’s Failure-to-Supply Recovery program simplifies the collection of those lost pharmacy dollars by removing the administrative burden from members of VHA Inc., University HealthSystem Consortium (UHC), and Provista. As the only group purchasing organization (GPO) to widely offer this service, Novation has collected more than $1 million in recovered funds since the inception of the program.
“To date, more than 1,900 members have taken advantage of this program and in addition to the $1MM already collected on behalf of members, nearly $800,000 in additional failure-to-supply claims are pending payment from suppliers,” said Mick Hunt, vice president, pharmacy contract and program services at Novation. “The financial return to members is a testament to the success of this service.”
Too often pharmacy buyers don’t have the time to uncover the failure-to-supply terms of each agreement, submit their own claims to each supplier, track and process the payments, and follow up with manufacturers when necessary. Novation’s failure-to-supply recovery service team is dedicated to the retrieval of failure-to-supply funds. The team processes the reports and collects the funds on behalf of members. Recovered dollars are returned to members in the form of a wholesaler credit-on-account. VHA, UHC and Provista members join the program by submitting a one-time enrollment agreement located on the Marketplace and Provista Web sites.
Members appreciate Novation’s failure-to-supply service because addressing the issue on their own requires added time and resources that most hospitals cannot afford. “Even if we only recover $100.00, it is $100.00 that we wouldn't have recovered otherwise,” according to one member. “And, this factor makes this program one of Novation’s best offerings.”
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About Novation
Founded in 1998, Novation is the leading health care supply contracting company for more than 25,000 members of VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances, and 5,500 members of Provista, LLC, representing 28,000 sites. Novation provides alliance members contract and price management and spend management services. Based in Irving, Texas, Novation develops and manages competitive contracts with more than 600 suppliers. VHA, UHC and Provista members used Novation contracts to purchased nearly $37.8 billion in 2009.
Media Contact
Kathryn Goldstein
Director, Public Relations
Novation
(972) 581-5529
kgoldste@novationco.com
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