ENHANCED SAVINGS PROGRAMS

Beyond a national portfolio and standard contracting services, Novation has used its expertise and experience to create innovative savings programs designed to deliver additional value to members and suppliers alike. These programs include:

Private Label Program

NOVAPLUS®, the private label of VHA and UHC, provides high-quality, non-clinical preference medical, surgical and pharmaceutical commodities that supersede national brand pricing and help members achieve standardization.

With the strength of more than $1.5 billion in annual purchases, the NOVAPLUS product portfolio includes more than 300 product categories and more than 1,300 individual line items.

True to its original founding principles - Prices Lowered Utilizing Standardization - NOVAPLUS provides the products VHA and UHC members use most, at prices that are unmatched elsewhere.

Standardization Programs

Novation's purchasing programs reward members based on their participation and ensure lower prices, enhanced patronage dividends, and improved operational and staffing efficiencies. Participation is purely voluntary, and members also have the flexibility to participate at whatever level they choose without losing the benefit of Novation's already exceptional portfolio. Ever evolving to best serve members, these programs include:

• Core Standardization Programs
  Standardization is one of the most challenging aspects of supply chain management. And our Core Standardization Programs are more flexible than ever before, offering more products, more suppliers, more options and more benefits for participants. Our standardization programs include:
  • Anesthesia
  • Food Service
  • Medical I, II & III
  • NOVAPLUS Pharmaceutical
  • Respiratory
  • Surgical I & II
    
    
• Novation Pharmacy Program
  In addition to delivering superior value on more than 9,500 line items in 850 major product categories, Novation’s Pharmacy Program provides clinical support, information sharing and process improvements such as standardization and utilization to over 1,500 program participants.

Capital Equipment Group Buys

Based on member research and the aggregation of planned purchases, group buys provide members even greater discounts and additional value, above and beyond existing Novation contracts. Equipment categories included in Novation’s group buys typically represent the top 50% of capital expenditures by members.

To participate in a group buy, members are not required to sign “letters of commitment” for participation but rather submit a “request for quotation” (RFQ) form, which authorizes the participating supplier to release the group buy pricing. The RFQ does not commit the member to participate, but does include a confidentiality statement due the competitive nature of the pricing and any value added features or services.

In 2005, UHC, VHA, and Healthcare Purchasing Partners International members saved a total of $41 million through national group buys.