Contracting News Fall 2004

Gravell receives HIGPA Achievement Award
Ed Gravell, Cardinal Health’s VP of health systems, received the 2004 HIGPA Achievement Award at the association’s recent annual conference and expo. HIGPA members recognized him for his service to HIGPA and the industry through his volunteer involvement, participation in educational events and member recruitment initiatives. Over the past 18 months, Gravell has served on the HIGPA board of directors; attended the association’s strategic planning session; spoken on behalf of HIGPA in different forums; participated in EXPO as a steering committee member, speaker and attendee; and participated on the HIGPA bylaws committee. In the past, Gravell has served as chair of a standing committee of the board and as a HIGPA officer. Among Gravell’s prizes was a donation in the memory of his sister for her work on behalf of the AIDS Services Foundation of Orange County, Calif.

Adventist, B. Braun sign contract for infusion products
B. Braun Medical Inc. entered into an agreement with Adventist Health System for its full-line of infusion products. Adventist is a member of the Premier Inc. hospital and healthcare alliance. Premier, with over 1,500 hospitals and health systems members, has signed a five-year, full-line infusion contract with B. Braun. As a result of this new agreement, Adventist Health System institutions now gain access to B. Braun IV therapy products, including safety-engineered products like the Outlook Safety Infusion System, Introcan Safety IV Catheter, ULTRASITE Needle-Free IV System, SureCan, Excel and PAB PVC-Free/DEHP-Free IV Containers, and the DUPLEX Drug Delivery System.

Siemens Medical sells scanners to Ohio State Medical Center, Northwestern
Malvern, Pa.-based Siemens Medical Solutions sold its most advanced computed tomography scanner, the SOMATOM Sensation 64, to Chicago’s Northwestern Memorial Hospital and Ohio State University Medical Center in Columbus. The SOMATOM Sensation 64 improves the hospital’s ability to diagnose and treat diseases earlier and increases patient comfort with shorter scanning times. The scanner also provides 64 slices per rotation for optimal image quality in cardiac, neurology and body imaging applications with a spatial resolution of 0.4 mm.

Consorta, Medline Industries ink two-year deal
Schaumburg, Ill.-based Consorta signed a two-year contract with Medline Industries Inc. in Mundelein, Ill., for surgical procedure trays, including specialty packs used in general and cardiovascular surgeries and other procedures. The contract is valued at about $40 million and is available to more than 2,000 Consorta member facilities.

Kindred Healthcare opens four hospitals
Kindred Healthcare Inc. in Louisville, Ky., opened four hospitals: Kindred Hospital-Dayton in Ohio, a freestanding 67-bed LTAC facility; Kindred Hospital-St. Louis-St. Anthony’s, a 38-bed hospital-in-hospital (HIH) located within the campus of St. Anthony’s Medical Center, St. Louis, Mo.; Kindred Hospital-Las Vegas at Desert Springs Hospital, a 40-bed HIH located within Desert Springs Hospital Medical Center in Las Vegas; and Kindred Hospital New Jersey-Rahway, a 28-bed HIH located within Robert Wood Johnson University’s Hospital at Rahway, N.J. Kindred also plans to open a HIH within Munroe Regional Medical Center, of Ocala, Fla., and within St. Michael Hospital, of Oklahoma City, Okla. Kindred Healthcare operates hospitals, nursing centers, institutional pharmacies and a contract rehabilitation services business.

Cerner Corp. inks deal with N.Y. Methodist Hospital, L.A.’s Childrens Hospital
Cerner Corp. in Kansas City, Mo., signed an agreement with Brooklyn’s New York Methodist Hospital and Childrens Hospital Los Angeles to deploy a CPOE system and a clinical documentation system. Cerner’s CPOE provides scientific data for inpatient and outpatient care, and physicians’ practices. With CPOE, Childrens and New York Methodist can benchmark and assess the treatment provided, streamline care and reduce medical errors. New York Methodist recently completed electronically connecting nearly 30 of the hospital’s patient care departments, including emergency, pharmacy, radiology and laboratories. By doing this, clinical documentation is auto-mated throughout the hospital. Childrens Hospital automated emergency room registration, triage tracking, clinician orders, documentation and medical records.

Veterans Affairs plans to open new clinic
The U.S. Department of Veterans Affairs in Washington, D.C., plans to open a new clinic in Sunrise, Fla., by Veterans Day 2005. The facility will replace an existing clinic in Oakland Park. New services to be offered at the Sunrise clinic include medical services for female soldiers and dialysis treatment. The Veterans Affairs Medical Center in Miami will remain open.

Boca Community Hospital to build cancer center
Boca Raton Community Hospital began construction on a 120,000-square-foot, three-story comprehensive cancer center. The $60 million facility will be paperless and film-less. Patients will carry their records and images on a two-inch computer memory stick, allowing physicians to access their medical histories and treatment plans from anywhere in the building. Hospital officials are establishing relationships with top-rated cancer research universities to provide the most up-to-date treatment to cancer patients. The cancer center is slated to open in October 2007. Inc 500 names Broadlane to fastest growing list
San Francisco’s Broadlane Inc. was named to Inc 500’s list of the fastest growing private companies in the United States, placing number 123 on the list. Companies had to be independent and privately held through fiscal year 2003; record $200,000 in net sales in the base year of 1999 for Inc 500 alumni and 2000 for new applicants; record $2 million in net sales for 2003; and record larger 2003 sales than 2002. They are ranked on averaged year-over-year sales growth.

HCA offers to buy back 61 million shares of stock
Nashville, Tenn.-based HCA Inc. attempted to purchase up to 61 million shares of its outstanding common stock for between $41 per share and $35 per share net to the seller in cash. No interest was paid. The offer expired at midnight on Nov. 10, 2004. HCA used $2.25 billion in credit facilities from JP Morgan to partially finance the tender offer. Additional funding came from a $1.5 billion short-term loan facility from JP Morgan and Merrill Lynch. The tender offer represented HCA’s attempt to increase the proportional ownership of non-tendering shareholders in HCA.

Coventry Health buys OmniCare Health Plan
Coventry Health Care Inc. in Bethesda, Md., completed the acquisition of Detroit’s OmniCare Health Plan. OmniCare has approximately 63,000 Medicaid enrollees with annual revenues of $150 million. With the acquisition, Coventry Health now has 3.2 million members in the Midwest, mid-Atlantic and southeast United States.

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