Allegiance, Novation Examine E-Commerce

McGAW PARK, Ill-Allegiance Healthcare Corp., a supplier of medical, surgical, and laboratory products, and Novation, the supply company of VHA Inc., and the University HealthSystem Consortium, have combined to research the role and value of the Internet in enhancing service and responsiveness in the healthcare supply system.

Allegiance will participate in an e-commerce study, sponsored by Novation. The study will examine e-business activities along the healthcare supply chain and potential operational benefits. The findings will be combined with other independent research Novation is sponsoring with large healthcare delivery systems.

Both Allegiance and Novation are investing heavily in e-commerce. More than 90% of Allegiance's business is transacted electronically through EDI and over the Internet. More than 5,000 customers use the Allegiance Web site, www.cardinal.com, regularly to order medical, surgical, laboratory, and pharmaceutical products.

Both companies hope the results of the survey help them better serve their customers.