NEWS RELEASE
Novation’s Spine Portfolio Offers Annual Savings Of $56 Million
IRVING, TX; November 11, 2008 — Novation, the leading health care contracting services company of VHA Inc., University HealthSystem Consortium (UHC) and Provista, LLC, announced today that it has awarded new spine contracts to the top five member-preferred industry leaders - Biomet, DePuy, Medtronic, Stryker and Synthes. These national contracts are part of Novation's comprehensive spine product portfolio offering members access to best value and leading-edge technology. The five spine agreements, effective Jan. 1, 2009 through Dec. 31, 2011, represent more than 98 percent of members’ spine product purchases and could provide as much as $56 million in annual savings for members.
“The dynamics of the spine industry are rapidly changing and Novation is taking the lead in providing members with contracts based on their feedback,” said Brian Kellner, MBA, Portfolio Executive for Orthopedics and Neurosurgical Products at Novation. “Members will have the potential in obtaining deep discounts, which are based on annual volume, manufacturer’s rebates and capped construct pricing for common spine procedures. In these economic times of rising costs and increased procedural growth, the new agreements will assist members’ in managing their costs.”
The Spine Industry is known for their advancements in new technology. The new Novation Spine contracts allow vendors to add new technology products to the portfolio as they become FDA cleared and commercially available.
Novation has also created several tools to assist Members in their spine decision process. A spine cross-reference tool is available for members to run cost analysis across various Spine Systems. The table indexes all the spine components for every major spine procedure across all five member preferred vendors. Members can find the cross-reference tool on the Novation Marketplace portal and is downloadable to your desktop.
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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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