Novation: Novation Awards Contracts for Trauma Products
Novation Awards Contracts for Trauma ProductsAgreements Provide Savings for VHA & UHC Members on Physician Preference Products IRVING, TX — (MARKET WIRE) — November 28, 2006 — Novation has awarded dual-source awards fortrauma products to Smith & Nephew and Synthes. The contracts
are effectiveDec. 1, 2006 and run through Nov. 30, 2009. Novation awarded the contractsthrough its public competitive bid process, with input from itsmember-based Orthopedic Council.
Trauma implants and devices are used by orthopedic surgeons to repairinjuries to bones and soft tissues. The new agreements offer a completeline of physician preference trauma products and the flexibility to offercustom solutions to meet VHA Inc. and University HealthSystem Consortium(UHC) member needs. The new Novation agreements include internal fixationproducts (plates, screws and nail systems) and external fixation products(AO Bilateral Fixators, Jet-X Fixators, and Circular Hybrid Rings).
Member savings will depend on product mix and purchase volume. VHA and UHCmembers’ savings will range from $250,000 to $1 million during thethree-year term of the agreement if conversions are applied. Agreementpricing provides on average five to 10 percent savings over the previousSmith & Nephew contract and one to two percent savings over the previousSynthes agreement depending on product mix.
About Novation
Based in Irving, Texas, Novation is the leading health care contractingservices company, delivering unmatched savings and value to nearly 2,500members of VHA Inc. and the University Health System Consortium (UHC), twonational health care alliances. Through its public competitive bid process,Novation develops and manages contracts with more than 500 suppliers, bothlarge and small. By combining scale and agility with clinical knowledge andproduct expertise, Novation offers the most extensive range of innovativecontracting services, including: contract development, contract andsupplier management, custom contracting, enhanced savings programs, onlinecontract management and analytical tools, order management and onlinesupplier connectivity. VHA and UHC members used Novation’s contracts topurchase more than $25 billion in supplies in 2005.
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