NEWS RELEASE
Novation No Longer Considering Supplier Requests for Price Increases
IRVING, TX; November 11, 2008 — Novation, the healthcare industry’s leading contracting services company, announced today, that effective immediately, and barring any unusual circumstances or specific existing contract language to the contrary, it will no longer consider supplier requests for price increases.
“The current economic conditions, including a dramatic decrease in the cost of commodities used in supply manufacturing, have dictated that price increases are no longer necessary,” said Dan Sweeney, Novation senior vice president, contract and program services.
Novation continues to diligently monitor the various market dynamics that affect pricing throughout all phases of a contract’s life cycle. Committed to delivering industry-best price to the members of VHA, the University HealthSystem Consortium (UHC) and Provista, Novation will re-evaluate recent price changes to be sure the change is still valid.
Novation provides members a number of resources related to raw materials, including:
- Novation’s Budget Impact Report – This semiannual report provides health care organizations with valid price-related data for the supply-related budgeting process by utilizing both Novation contract information and federal statistics from the Producer Price Index.
- Trends and Forecasts for Raw Materials – Novation actively monitors 13 indices and provides data snapshots to assist health care organizations with planning in these areas.
Every raw material index Novation monitors has decreased in the last month, a few examples include:
- 35% decrease in the cost of rubber
- 32.6% decrease in the cost of oil
- 31% decrease in the cost of gasoline
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- 21.1% decrease in the cost of latex
- 19.1% decrease in the cost of cotton
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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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