IRVING, Texas, Feb. 8, 2012 /PRNewswire/ -- Novation, the leading health care supply contracting company owned by VHA and UHC, today announced that the Child Health Corporation of America (CHCA) has signed an agreement to utilize and benefit from Novation's contracting and supply chain solutions. The CHCA Board of Directors chose Novation as the best supply cost reduction partner based on due diligence and recommendations by a member-led task force representing CHCA's children's hospital members with more than $2 billion in annual purchases.
"The financial demands placed on our children's hospitals, and the opportunity to apply industry-leading supply chain analytic tools and practices to improve our effectiveness and efficiency, have led us to enter into partnership with Novation as our group purchasing partner," said Ben Melson, Executive Vice President and CFO, Texas Children's Hospital, Chair of GPO Due Diligence Task Force. "The selection of Novation follows a rigorous process that examined the capabilities of the leading national GPOs within the context of the children's hospitals' evolving supply chain needs and expectations. We look forward to a new strategic partnership with Novation that will create a new level of value."
CHCA is a business alliance and part of the Children's Hospital Association, which represents more than 220 children's hospitals and advances child health through innovation in the quality, cost and delivery of care.
As part of its new relationship with CHCA, Novation will leverage its experience and supplier relationships to employ innovative and customized contracting strategies that will offer the industry's leading array of pediatric services, including unique approaches to products and commitment, as well as provide additional value to meet the diverse needs of children's hospitals.
"Our proven expertise in uniquely serving a number of specialty health care groups, especially pediatric facilities whose challenges require special attention, makes us the right partner for CHCA's future," said Jody Hatcher, President and CEO of Novation. "Because the member groups we serve are so diverse, Novation is adept at tailoring its programs, analytics and solutions to meet the very specific needs of unique member types and provide supply cost savings that improve their bottom line."
"This relationship highlights the perfect alignment between our organizations' integrity and values," said Hatcher. "We are proud that CHCA chose Novation as its supply cost reduction partner, and we believe this move reinforces Novation's ability to provide unmatched value to health care providers."
About Novation, Winner of the Ethics Inside® Certification
Founded in 1998, Novation is the leading health care supply contracting company for the more than 65,000 members of VHA Inc. and UHC, two national health care alliances, 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 600 suppliers. VHA, UHC, and Provista members used Novation contracts to purchase more than $40 billion in 2011. Novation recently 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, and is the only health care group purchasing organization to earn this distinction.
Child Health Corporation of America (CHCA) is a business alliance of children's hospitals whose executive and clinical leaders share data, knowledge and buying power to reduce costs and improve clinical and operational performance. CHCA is part of the Children's Hospital Association whose mission is to advance child health through innovation in the quality, cost and delivery of care. Representing more than 220 children's hospitals, the Association is the voice of children's hospitals nationally. Formed in 2011, Children's Hospital Association brings together the strengths and talents of three organizations: CHCA, National Association of Children's Hospitals and Related Institutions (NACHRI) and National Association of Children's Hospitals (N.A.C.H.). The Association has offices in Alexandria, VA, and Overland Park, KS. For more information about CHCA, visit www.chca.com.
SOURCE Novation; Child Health Corporation of America