Novation Launches New and Enhanced Food Programs to Help Health Care Organizations Lower Costs, Improve Patient Satisfaction

Jun 24, 2014, 15:15 ET from Novation

IRVING, Texas, June 24, 2014 /PRNewswire/ -- To help hospitals and health systems lower costs and better serve patients, Novation today announced enhancements to its industry-leading NOVAFOOD portfolio and a new Food Standardization program.

Through an expanded number of offerings, hospitals can save an average of 25 percent on a broader range of food categories.  In addition, they can participate in increased cash rebate opportunities for standardizing that are about 7 percent greater than previously offered.

In addition to lower operating costs, the enhanced food contracts help hospital administrators address new health care reform changes, including Medicare reimbursement based partly on patient satisfaction scores.  While food is not directly part of patient satisfaction surveys, many administrators believe it is a driving factor in the overall patient experience.  Industry reports suggest that this year, about $1 billion in federal Medicare payments will hinge in part on patient satisfaction surveys.

NOVAFOOD: Expanded Choices
Effective July 1, Novation will offer 106 new contracts across 60 product categories in its NOVAFOOD program.  The categories include cereals, soups and supplements, and also feature several new categories such as coffee distribution, fresh squeezed juices, Greek yogurt, toasted pastries and tortillas. 

"Food quality continues to play a role in patient satisfaction, and we are very pleased to offer the members we serve an even broader range of great food choices at excellent values, including 106 new contracts that also feature 11 new food categories," said Amanda Hamilton, director, NOVAFOOD, Novation.  

More than 9,500 facilities across the U.S. participate in the NOVAFOOD program which includes more than 30,000 food items, including deep discounts on capital equipment and supplies.  Through the program, Novation offers 100 percent coverage of an organization's food purchasing needs including food products, services, consulting, capital equipment and education.  

New Food Standardization Program Features Increased Rebate Opportunities
Novation launched a new Food Standardization program that includes 62 food product categories with new supplier options in 29 of the categories.  The program, effective July 1, replaces the previous program that expires at the end of June.  To participate in the new program, hospitals must re-sign through the standardization program.

"The expanded food standardization rebate opportunities, a part of our overall standardization programs, enable health care organizations to further lower costs.  The program also helps hospitals increase ordering efficiencies and streamline inventory management," said Brent Gee, senior director, Novation.

Last year, the Novation Food Standardization program paid more than $10 million in rebates to participating members.  Since 1996, the Novation Standardization Programs have delivered more than $1 billion in rebate value to participating members.

About Novation, Winner of the Ethics Inside® Certification

Founded in 1998, Novation is the leading health care supply chain expertise, analytics and contracting company for the more than 100,000 members and affiliates of VHA Inc. and UHC, two national health care alliances, Children's Hospital Association, an alliance of the nation's leading pediatric facilities, and Provista, LLC. Novation provides alliance members with sourcing services, as well as information and data services. Based in Irving, Texas, Novation develops and manages competitive contracts with more than 800 suppliers. Members of VHA, UHC, Children's Hospital Association and Provista used Novation contracts to purchase approximately $49 billion in 2013. Novation has earned the coveted Ethics Inside® Certification from Ethisphere Institute, a leading international think tank dedicated to the research and promotion of best practices in corporate ethics and compliance. Novation was also named on Ethisphere's World's Most Ethical Companies list and is the only company in the health care industry to earn both distinctions for three consecutive years. To learn more about Novation, please visit and follow @NovationNews.


SOURCE Novation