IRVING, Texas, Nov. 8 /PRNewswire/ -- VHA Inc., a national health care
alliance, announced today that hospitals in Kansas saved more than $10.8
million in 2004 through its supply chain services and group purchasing
programs, and that the hospitals are on track to exceed that savings figure in
2005. Sixty-six Kansas-based health care organizations purchased more than
$180 million in health care supplies in 2004 through Novation, VHA's group
purchasing organization (GPO).
Four rural Kansas hospitals, Hays Medical Center, Hutchison Hospital,
Pratt Regional Medical Center and Salina Regional Health Center, collectively
saved more than $4 million through VHA and Novation in 2004. These rural
hospitals face obstacles in meeting patient needs that are unlike those in
urban areas, including the ability to command the supplies and services they
need at prices they can afford. VHA helped them collaborate to negotiate
better pricing and reduce supply expenses and increase operating income -- all
while keeping quality standards high.
"Finding and buying the best drugs, supplies and medical devices at the
best possible prices is a big challenge particularly for smaller, rural
hospitals," says Susan Page, chief executive officer of Pratt Regional Medical
Center. "Through VHA and Novation, we are able to access the same expertise
as larger hospitals allowing us to benefit from shared experiences."
Dozens of other hospitals and clinics in Kansas are part of the VHA
alliance, including: Cheyenne County Hospital, Hiawatha Community Hospital,
Lawrence Memorial Hospital, Mitchell County Hospital, Stormont-Vail
HealthCare. Each hospital voluntarily participates in VHA programs that help
them help save money on the best drugs, supplies, services and medical devices
for their patients.
GPOs serve as extensions of hospital purchasing departments, providing
special expertise, negotiating experience, electronic tools and processes to
streamline buying and save hospitals hundreds of millions of dollars each
year. Hospitals buying through Novation save an average of 1 percent to 3
percent, compared with purchasing on their own or through other GPOs. The
savings fall immediately to a hospital's bottom line and make resources
available for other uses.
"Hospitals have never been under so much pressure to provide unlimited
care on limited budgets," said Randy Peterson, president and chief executive
officer of Salina Regional. "The savings that hospitals realize through VHA
are real, and necessary."
In addition to working with hospitals in the state, VHA and Novation have
contracts with Kansas suppliers, including: Medi-Flex and Suture Express.
These companies make antiseptics, wound care products, sterile instruments and
endo-surgical products. Through Novation, suppliers are able to promote new
and emerging technologies to the health care marketplace.
VHA Inc., based in Irving, Texas, is a national alliance that provides
industry-leading supply chain management services and supports the formation
of regional and national networks to help members improve their clinical and
economic performance. With 18 offices across the U.S., VHA has a track record
of proven results in serving more than 2,400 health care organizations
CONTACT: Lynn Gentry
SOURCE VHA Inc.