IRVING, Texas, Dec. 14 /PRNewswire/ -- VHA Inc., a national health care alliance, announced today that hospitals in Pennsylvania saved more than $101.8 million in 2004 through its supply chain services and group purchasing programs, and the hospitals are on track to exceed that savings figure in 2005. Seventy-three Pennsylvania hospitals purchased more than $1.2 billion in health care supplies in 2004 through Novation, VHA's group purchasing organization (GPO). Abington Memorial Hospital in Montgomery County saved more than $7.2 million in 2004 through VHA and Novation, including $2.4 million when VHA helped Abington develop a new process for engaging physicians and negotiating better prices on sophisticated and expensive medical devices. "Finding and buying the best drugs, supplies and medical devices at the best possible prices takes an enormous amount of time and requires significant input from purchasing and clinical staff members." says Richard Montalbano, vice president at Abington Memorial. "Working with VHA and Novation allows us to work with our doctors to identify cost saving opportunities that also improve the quality of care and patient satisfaction." Other health care providers that are part of the VHA alliance in Pennsylvania include: Altoona Hospital, Butler Health System, Crozer-Keystone Health System, Hamot Medical Center, Holy Redeemer Health System, Lehigh Valley Hospital & Health Network, St. Clair Memorial Hospital, Temple University Health System, University of Pennsylvania Health System and WellSpan Health. Each hospital voluntarily participates in VHA programs that help them save money on the best drugs, supplies, services and medical devices for their patients. GPOs serve as extensions of hospital purchasing offices, 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 three to six percent per year on supplies. 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 Jerry Miller, president and chief executive officer at Springfield-based Crozer-Keystone Health System, which saved millions on supplies in 2004 working with VHA. "That's why it's crucial that we find ways to operate as efficiently as possible, and the savings we realized are real, and other hospitals and health care systems in Pennsylvania are benefiting from VHA's services, too." "We've been a broad-based supporter of VHA because we benefit from its clinical collaboratives and from its supply chain program," said Steven P. Johnson, president and CEO of Susquehanna Health System in Williamsport, Pa., which will save more than $650,000 this year through VHA's supply chain management programs. "VHA helps us effectively apply strategies that are being used in other health care organizations to our organization, and VHA makes it easier for us to learn about and implement best practices." In addition to working with hospitals in the state, VHA and Novation have contracts with Pennsylvania suppliers, including: Aesculap Inc., CardiacAssist Inc., Draeger Medical Inc., InterMetro Industries Inc., Jefferson Medical & Imaging Inc., Medrad Inc., Molnlycke Health Care Inc., Respironics Inc. and Teva Pharmaceuticals Industries Ltd. These contracts span a wide range of products: cardiac devices, wound care products, oral care products and office products. Through Novation, suppliers are able to promote new and emerging technologies to the health care marketplace. About VHA 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 nationwide. CONTACT: Lynn Gentry of VHA Inc., +1-972-830-0798, or firstname.lastname@example.org.
SOURCE VHA Inc.