Novation Signs Agreements with Guidant and Medtronic for Cardiac Rhythm Management Products

Strategic Insights -

Novation, the supply company of VHA Inc. and the University HealthSystem Consortium (UHC), has signed agreements with Guidant Corp. and Medtronic USA Inc. for cardiac rhythm management products, equipment, and accessories. The contracts cover implantable pacemakers and defibrillator systems, heart failure systems, and temporary pacing and leads. The agreements were reached through Novation's public competitive bid process, member surveys, and the Novation Cardiology Council, which includes clinicians and purchasing executives from member hospitals. The council's decision considered both financial and non-financial criteria, such as product quality, availability, service reputation, and innovation.

Key Takeaways:

  • Novation has signed agreements with Guidant Corp. and Medtronic USA Inc. for cardiac rhythm management products, covering implantable pacemakers, defibrillator systems, heart failure systems, and temporary pacing and leads.
  • The agreements were reached through a competitive bid process, member surveys, and the Novation Cardiology Council, which includes clinicians and purchasing executives from member hospitals.
  • The council's decision considered both financial and non-financial criteria, such as product quality, availability, service reputation, and innovation.
  • The contracts will cover more than 7,700 hospitals and health care facilities, including members of VHA, UHC, and HealthCare Purchasing Partners International (HPPI).
  • Novation has managed over $22 billion in annual purchases for VHA, UHC, and HPPI members in 2002.
  • The agreements also extend to health care organizations that purchase supplies through HealthCare Purchasing Partners International, a company that markets Novation agreements to other health care providers.

Statistics:

  • Over $22 billion in annual purchases managed by Novation in 2002.
  • More than 7,700 hospitals and health care facilities covered by the contracts.
  • The agreements cover implantable pacemakers and defibrillator systems, heart failure systems, and temporary pacing and leads.
  • 12,000 employees at Guidant Corporation.
  • 2,300 members and affiliates of VHA and UHC.
  • 5,400 members and clients of HealthCare Purchasing Partners International (HPPI).

Sources:

  • Novation
  • Guidant Corporation
  • Medtronic
  • COMTEX (http://www.comtexnews.com)