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Novation Group Buys Help Hospitals Lower Costs, Achieve Savings of up to 74 Percent on Capital Equipment

Category:

02/03/14

Dateline:

IRVING, Texas

Novation, the leading health care supply chain expertise, analytics and contracting company, announced the availability of national Group Buy agreements that enable health care organizations to save up to 74 percent on capital equipment purchases.

Novation, which serves the more than 100,000 members and affiliates of VHA Inc. UHC, Children’s Hospital Association, and Provista, LLC, has helped hospitals save almost $700 million on more than 45 major categories of equipment through its Group Buys program, which offers significant savings on key products and services on quarterly basis. In addition, since its inception in 2005, more than 3,500 organizations have purchased $3.1 billion of capital products through the program.

The current Group Buy agreements, effective through March 31, 2014, offer savings to members on a wide variety of products across several categories, including C-Arms, computed radiography, CT scanners, external defibrillators, exam room equipment, OR tables and accessories, radiography and ventilators. In addition, agreements for products were awarded to several suppliers including Cardinal Healthcare, Carestream Health, FHC, Physio Control, SwissRay, Toshiba America Medical Systems, UMF and Ziehm.

“Hospital purchasing managers look for every opportunity to maximize their capital spending, and we are pleased to provide the members we serve with a variety of programs, such as quarterly group buys, that go beyond our array of contracts to help meet their need to provide quality care at a lower cost,” said Mike Clemens, Vice President, Sourcing Operations, Capital, Construction and Imaging, Novation.

About Group Buys

The national Group Buys program aggregates member purchasing volume on a quarterly basis to maximize savings opportunities. The promotions typically provide members with double-digit cost saving opportunities on a wide range of product categories. The program also includes several value-added benefits offered by suppliers to health care organizations including incremental payment terms, reduced or free shipping, extended delivery terms, multimodality discounts, financing options and service discounts.

The quarterly Group Buys are one of several innovative programs from Novation designed to help members achieve even greater savings, including Standardization, NOVAPLUS, Pharmacy and the Committed Portfolio.

About Novation

Novation is the nation’s leading health care services company, focused on revolutionizing operational performance for more than 100,000 members and affiliates of VHA Inc., UHC, Children's Hospital Association and Provista LLC. Novation’s progressive approach to cost performance, data and intelligence, and integrated advisory solutions helps health care providers envision and advance new models of cost-effective, high-quality care. Headquartered in Irving, Texas, Novation is committed to the highest standards of ethical behavior and twice has been honored with the Ethisphere Institute’s coveted Ethics Inside® Certification, and has been named four years consecutively to Ethisphere’s World’s Most Ethical Companies list.

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