VHA Inc. Delivers $1.15 Billion in Value for Members in 2000

Apr 30, 2001, 01:00 ET from VHA Inc.

    IRVING, Texas, April 30 /PRNewswire/ -- VHA members received $1.15 billion
 in total cash and other value through their participation in the VHA health
 care alliance in 2000, a 22 percent increase over 1999 results and the best
 year ever for VHA members.
     Structured as a cooperative, VHA distributes income annually to member
 health care organizations based on their participation in VHA programs.  The
 results were announced today at VHA's annual Leadership Conference in Los
 Angeles, attended by representatives from VHA's 2,200 member health care
 organizations and hundreds of key business partners.
     Total cash distribution to VHA members for 2000 exceeded $194 million.
 VHA saved its members an additional $957 million through Novation, the supply
 company of VHA and the University HealthSystem Consortium, and other
 initiatives, such as information technology services and local office
 programs.  The $957 million in savings represents a 27 percent increase over
 1999 results.  In 2000, VHA members purchased more than $13.4 billion worth of
 products and services through Novation and VHA business units such as
 outsourcing and performance consulting.
     VHA's membership grew 14 percent in 2000.  Currently, more than
 2,200 health care organizations are members of the alliance.  New members in
 2000 included:  Mayo Foundation for Medical Education and Research, Rochester,
 Minn.; MedStar Health, Columbia, Md.; and UMass Memorial Health Care,
 Worcester, Mass.
     "Our mission is to help VHA health care organizations improve their
 operational efficiency and clinical effectiveness so they can be successful in
 their local markets," said C. Thomas Smith, VHA's president and chief
 executive officer.  "This support takes many forms, from VHA's Clinical
 Advantage program, which offers knowledge to support clinical improvement, to
 Novation, which provides significant financial savings on supply purchases."
     Based on member support, Novation has become the largest supply cost
 management organization in health care, managing more than $17 billion worth
 of purchases annually for VHA members, members of the University HealthSystem
 Consortium and HealthCare Purchasing Partners International.
     "This is a critical time in the health care environment," said Smith.
 "Health care organizations need tools and strategies that equip them for even
 tougher times that may lie ahead.  One of our roles is to forge relationships
 with business partners that can help members operate more efficiently and
 effectively.  One of the most aggressive steps we've taken in this regard was
 to form a relationship with Neoforma last year to create Market@Novation, our
 online purchasing solution for members.  By effectively delivering e-commerce
 services, we will help members eliminate significant costs from their supply
 chain operations.  We are in the process of finalizing a study that will help
 members and supply partners quantify the real value e-commerce can deliver.
 The final report on this research project, which included members,
 manufacturers and distribution partners, will be out this summer."
     VHA's financial performance in 2000 represents a 56-to-l return to VHA
 members.  In other words, VHA shareholder and partner organizations received
 or saved more than $56 for every dollar spent to be a part of VHA.
 Shareholder and partner organizations will receive their cooperative payments
 within the next several weeks, together with a report outlining their specific
 participation levels and the specific value received through VHA during 2000.
 
     About VHA Inc.
     Built on the premise there is strength in numbers, VHA is a nationwide
 network of 2,200 leading community-owned health care organizations and their
 affiliated physicians.  Based in Irving, Texas, with 18 local offices across
 the U.S., VHA comprises nearly 27 percent of the nation's community hospitals,
 including many of the nation's largest and most respected institutions.  VHA
 offers member organizations access to products and services that will help
 them improve financial and clinical performance and achieve market success.
 As a cooperative, VHA distributes income annually to members based on their
 participation.  In December 2000, for the second year in a row, VHA was named
 one of the "100 Best Companies to Work For" by Fortune.  For more information
 on VHA, go to http://www.vha.com
 
      Contact:  Lynn Gentry
                972-830-0798
                lgentry@vha.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X80349010
 
 

SOURCE VHA Inc.
    IRVING, Texas, April 30 /PRNewswire/ -- VHA members received $1.15 billion
 in total cash and other value through their participation in the VHA health
 care alliance in 2000, a 22 percent increase over 1999 results and the best
 year ever for VHA members.
     Structured as a cooperative, VHA distributes income annually to member
 health care organizations based on their participation in VHA programs.  The
 results were announced today at VHA's annual Leadership Conference in Los
 Angeles, attended by representatives from VHA's 2,200 member health care
 organizations and hundreds of key business partners.
     Total cash distribution to VHA members for 2000 exceeded $194 million.
 VHA saved its members an additional $957 million through Novation, the supply
 company of VHA and the University HealthSystem Consortium, and other
 initiatives, such as information technology services and local office
 programs.  The $957 million in savings represents a 27 percent increase over
 1999 results.  In 2000, VHA members purchased more than $13.4 billion worth of
 products and services through Novation and VHA business units such as
 outsourcing and performance consulting.
     VHA's membership grew 14 percent in 2000.  Currently, more than
 2,200 health care organizations are members of the alliance.  New members in
 2000 included:  Mayo Foundation for Medical Education and Research, Rochester,
 Minn.; MedStar Health, Columbia, Md.; and UMass Memorial Health Care,
 Worcester, Mass.
     "Our mission is to help VHA health care organizations improve their
 operational efficiency and clinical effectiveness so they can be successful in
 their local markets," said C. Thomas Smith, VHA's president and chief
 executive officer.  "This support takes many forms, from VHA's Clinical
 Advantage program, which offers knowledge to support clinical improvement, to
 Novation, which provides significant financial savings on supply purchases."
     Based on member support, Novation has become the largest supply cost
 management organization in health care, managing more than $17 billion worth
 of purchases annually for VHA members, members of the University HealthSystem
 Consortium and HealthCare Purchasing Partners International.
     "This is a critical time in the health care environment," said Smith.
 "Health care organizations need tools and strategies that equip them for even
 tougher times that may lie ahead.  One of our roles is to forge relationships
 with business partners that can help members operate more efficiently and
 effectively.  One of the most aggressive steps we've taken in this regard was
 to form a relationship with Neoforma last year to create Market@Novation, our
 online purchasing solution for members.  By effectively delivering e-commerce
 services, we will help members eliminate significant costs from their supply
 chain operations.  We are in the process of finalizing a study that will help
 members and supply partners quantify the real value e-commerce can deliver.
 The final report on this research project, which included members,
 manufacturers and distribution partners, will be out this summer."
     VHA's financial performance in 2000 represents a 56-to-l return to VHA
 members.  In other words, VHA shareholder and partner organizations received
 or saved more than $56 for every dollar spent to be a part of VHA.
 Shareholder and partner organizations will receive their cooperative payments
 within the next several weeks, together with a report outlining their specific
 participation levels and the specific value received through VHA during 2000.
 
     About VHA Inc.
     Built on the premise there is strength in numbers, VHA is a nationwide
 network of 2,200 leading community-owned health care organizations and their
 affiliated physicians.  Based in Irving, Texas, with 18 local offices across
 the U.S., VHA comprises nearly 27 percent of the nation's community hospitals,
 including many of the nation's largest and most respected institutions.  VHA
 offers member organizations access to products and services that will help
 them improve financial and clinical performance and achieve market success.
 As a cooperative, VHA distributes income annually to members based on their
 participation.  In December 2000, for the second year in a row, VHA was named
 one of the "100 Best Companies to Work For" by Fortune.  For more information
 on VHA, go to http://www.vha.com
 
      Contact:  Lynn Gentry
                972-830-0798
                lgentry@vha.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X80349010
 
 SOURCE  VHA Inc.