Novation Recognizes More than 200 Hospitals and Health Networks for Achievements in Standardization

IRVING, Texas, Sept. 15, 2014 /PRNewswire/ -- Novation, the leading health care services company, today recognized more than 200 health care providers across the country that have demonstrated excellence in lowering costs through the use of IMPACT Standardization Programs^TM.  Winners included members of VHA Inc., UHC, Children's Hospital Association and Provista Inc. who participated in all standardization categories or obtained significant value in rebates.

Novation honored organizations in two key categories:

• 117 hospitals that saved $250,000 or more through rebates
• 85 hospitals that used all of Novation's current 11 IMPACT Standardization Programs

One leading organization is Parkland Health & Hospital System in Dallas, which first opened its doors in 1894 and is now one of the largest public hospital systems in the country, licensed for 861 adult beds, 107 neonatal beds and has more than 10,000 employees.

"In today's healthcare environment it's no surprise that hospitals nationwide are doing everything possible to contain operating costs and reduce supply expenses.  At Parkland, the Supply Chain Division has employed a number of strategies to accomplish this," said Parkland director, Value Analysis, Otar Sarishvili, MD, MBA.

"A strategy where Parkland has had a high degree of success has been regular participation in standardization programs offered through Novation. Through collaboration with physicians and clinical staff we are able to maximize compliance with these programs, while providing high quality products for our patients. This, in turn, has resulted in enhanced value in the form of standardization rebates and effectively a net cost reduction on our purchases, as well as operational efficiencies including the decrease in variation, inventory management, the ease of ordering, etc. During 2013 alone, Parkland's standardization-related savings exceeded $600,000. Today we continue successful participation in IMPACT Standardization Programs," said Sarishvili.

Another leader in achieving cost savings is Sanford Health, an integrated health system based in the Dakotas, and the largest rural, not-for-profit health system in the nation with locations in 126 communities in nine states with 27,000 employees.    

"Sanford is delighted to be recognized by Novation for our advances in reducing costs to the patients we serve," said Marlys Harnisch, executive director, Supply Chain Management, Sanford Health.  "As a large IDN that has experienced dynamic growth in recent years, product standardization has been a key component in managing variation over our expanded 260,000 square mile service area.  Novation's IMPACT Standardization Programs have supported Sanford's cost reduction efforts through new formulary development as well as driving greater compliance with our existing contracts."

For more than 18 years, Novation has been an industry leader in helping providers drive down costs through standardization. Since the program's inception, Novation has paid more than $1 billion in rebate value to the members it serves.

"By reducing variation, hospitals can make a big impact for their organizations and patients in purchasing high quality products at lower costs," said Brandy Reed, director, IMPACT Standardization Programs, Novation. "That's one of the reasons we recently refreshed the name of our program to IMPACT Standardization. It also reflects our efforts to continue adding opportunities for greater savings, such as the new Food and Bedside Care programs."

The following is a list of the organizations and awards:

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 follow @NovationNews.

SOURCE Novation