Contracting News May/June 2008

ROi names Dooley VP – group purchasing
St. Louis, Mo.-based Resource Optimization & Innovation (ROi), an operating division of the Sisters of Mercy Health System (Mercy), named Lawrence (Larry) Dooley to the position of VP – group purchasing. In this role, Dooley will be a member of ROi’s executive leadership team and oversee all group purchasing activities including contracting, item file management, pricing administration, rebate management and member services activities. Prior to joining ROi, Dooley served as Vice President of Sales for CoreTrust Purchasing Group in Brentwood, Tenn. From 2003 to 2007, he served as Vice President of Contract and Program Services at Novation in Irving, Texas. Dooley holds bachelor’s degrees in business and history from St. Thomas University in Miami.

Novation names Langenberg as CFO
Irving, Texas-based Novation LLC named Jack Langenberg to serve as CFO for Novation and Provista. Langenberg most recently was VP of finance at Kelly Services Inc., a provider of global staffing solutions. He also held financial positions at Price Waterhouse, General Motors Japan, Delphi Corporation, and Altair Engineering.

Wake Forest University Baptist Medical Center withdraws CON application
Winston-Salem, N.C.-based Wake Forest University Baptist Medical Center withdrew its CON application for a proposed 46 acute care bed facility, which would have cost $104 million. The structure would also have offered a birthing unit with four obstetrical beds. Wake Forest, which already has a CON application submitted for a 50-bed facility, decided to withdraw the second CON since state legislators might have considered the two applications as competing against one another, lessening the chance for either to be approved. A decision could be reached by August 2008.

Association of American Medical Colleges recommends ban on supplier freebies
The Association of American Medical Colleges (Washington, D.C.) plans to recommend a ban on all free samples, gifts, travel, dining and ghost writing offered by drug and medical device companies for physicians, staff, and students. The association’s recommendations are not binding, but are likely to be widely observed. To ensure that uninsured and charity patients can receive free samples, it will recommend that medical schools set up centralized systems for accepting the samples. The group also proposes that medical schools should discourage faculty from participating in industry-funded speaker’s bureaus.

Amerinet Central names Ubbing to board
Warrendale, Pa.-based Amerinet Central has named Mina Ubbing, president and CEO of Fairfield Medical Center (FMC) (Lancaster, Ohio), to its board of directors. Ubbing was appointed president and CEO of FMC in 2001. Previously, she served as Fairfield’s CFO.

Cardiac Science promotes Bob Atkins to director, national accounts
Bothell, Wa.-based Cardiac Science Corporation announced the promotion of Bob Atkins to director of National Accounts. Atkins has made significant contributions in the area of national accounts, securing important national GPO contracts. His current initiative is to develop a strategic and tactical plan to make Cardiac Science a relevant player in the ever growing Integrated Healthcare Network (IDNs) market.

Parkland Health receives Joint Commission accreditation
Dallas, Texas-based Parkland Health Hospital System received full accreditation from The Joint Commission (Oakbrook Terrace, Ill.).

LSU opens new outpatient surgery center and plans to buy site for hospital
Baton Rouge, La.-based LSU Health Care Services Division opened a new outpatient surgery, which will operate as a satellite of Earl K. Long Medical Center (Baton Rouge, La.). Plans are also underway at LSU to purchase property for a new 175- to 200-bed University hospital in Baton Rouge by summer 2008 that could eventually replace Earl K. Long.

Mile Browder named CEO of Essent Healthcare
Mike Browder was named as the permanent CEO of Nashville, Tenn.-based Essent Healthcare. He joined the company in 2001 as CFO and will continue to hold the position. In his dual role, Browder will oversee the operations and growth of the company as well as traditional corporate financial functions and capital structure development.

Sun Coast Hospital purchased by Largo Medical Center Inc.
Largo, Fla.-based Sun Coast Hospital has been purchased by Largo Medical Center Inc. (Largo, Fla.), owned by HCA Inc. (Nashville, Tenn.), for the sum of $19.7 million. A 200-bed facility, Sun Coast filed Chapter 11 bankruptcy on Dec. 28, 2007, after struggling as an independent hospital.

In the March/April 2008 issue, (“What Makes a GPO Stand Out From the Others?”), the Journal of Healthcare Contracting mistakenly printed in a pull quote that last year, Amerinet members received $439 million in return for meeting their contract requirements. It should have been $39 million, as reflected in the main article. Also, in the same article, a software tool of Premier’s was listed as Safety Surveillance, when it actually is called SafetySurveillor TM. We regret the errors.

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