Contracting News May/June 2006

Premier awards new spine contracts
San Diego-based Premier Inc. awarded 36-month agreements for spinal implants and related products to Medtronic Sofamor Denak of Memphis, Tenn., EBI Spine of Parsippany, N.J., Aesculap Inc. of Center Valley, Pa. and Osteotech Inc. of Eatontown, N.J. The contracts become effective July 1, 2006, and will include spinal hardware, stimulation and biologic products for both pediatric and adult patients. These products are available for minimally invasive procedures, as well as standard open spine procedures and are used to treat symptoms due to degenerative diseases, osteophyte formation, deformities, tumors and herniated discs.

Virtua Health, Fox Chase open cancer center
Virtua Health, based in Marlton, N.J., and Fox Chase Network of Cheltenham, Pa., opened the $5 million, 5,500-square-foot Fox Chase Virtua Health Cancer Treatment Center in Voorhees, N.J., after 18 months of construction. The state-of-the-art radiation oncology facility offers advanced imaging, innovative network capabilities, and a cutting-edge radiation delivery system. The facility uses advanced technology such as PACS and 3D computerized treatment planning that allows for precise delivery of radiation. The center also houses the Palo Alto, Calif.-based Varian Medical Systems Inc.’s Clinic iX linear accelerator, the only one in southern New Jersey.

Aspen Healthcare Metrics, Guidant Corp settle lawsuit
Aspen Healthcare Metrics, of Englewood, Col., a subsidiary of MedAssets, based in Alpharetta, Ga., settled a lawsuit with Indianapolis-based Guidant Corp. that alleged AHM induced hospitals to violate confidential pricing agreements with Guidant. The terms of the settlement were not disclosed. AHM did not admit wrongdoing. In February 2006, a U.S. District Court judge in St. Paul, Minn., issued a summary judgment in favor of Guidant. AHM had planned to go to trial on damages and file and appeal, but Guidant offered a settlement.

Novation Names New President
Irving, Texas-based Novation, and the University HealthSystem Consortium, of Oak Brook, Ill., named Joellyn Willis as its new president. Willis replaces Mark McKenna, who announced his retirement in November 2005 after working at both VHA and Novation for 19 years. Willis brings to Novation more than 15 years of senior leadership experience directing sourcing and logistics operations in the electronics and utilities industries. Most recently she was the senior supply chain executive for Baltimore-based Constellation Energy Group, a supplier of competitive energy.

PSS Receives VHA award
Jacksonville, Fla.-based PSS World Medical Inc. announced that Physician Sales and Service Inc., the company’s physician business, received the VHA Non-Acute Care Services Outstanding Distributor Award at the VHA Supplier Forum in Orlando, Fla. The award is based on sales growth from 2004 to 2005 for non-acute sites. During this time period, PSS increased business with Irving, Texas-based VHA Inc. by 17 percent and was recognized for outstanding performance, quality and customer service.

Novation Signs Agreement with IRIS International
Irving, Texas-based Novation, the healthcare contracting services company of VHA Inc., also based in Irving, Texas, and University HealthSystem Consortium, of Oak Brook, Ill., entered into a supply agreement with IRIS International Inc., of Chatsworth, Calif. Effective May 15, 2006, the one-year contract includes two one-year extension options and covers IRIS’ iQ Body Fluids Module for use on the iQ 200 Automated Urine Microscopy Analyzer. Under the agreement, IRIS will also have access to HealthCare Purchasing Partners International (HPPI), of Irving, Texas.

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