Novation Awards Agreements to 11 Companies for Innovative Medical Products

IRVING, Texas -- Novation, the supply company of VHA Inc. and the University Health System Consortium, has awarded agreements to 11 companies, adding their products to its contract portfolio. Nine of the agreements were initiated through Novation's Innovative Technology Department, a work unit created exclusively to identify new medical technologies that could improve patient care.

"Our objective in creating the Innovative Technology Department was to enhance opportunities for members to save money on purchases of medical technologies," said Mark McKenna, president of Novation. "At the same time, we want to give the manufacturers of these products a way to do business with Novation that allows them flexibility beyond our normal competitive bid process if they offer products that are unlike others in the marketplace and our members deem the products to be truly innovative. These products are produced by medical manufacturers of all sizes."

Novation initiated its efforts to uncover new contracting opportunities with small manufacturers following a Senate subcommittee hearing last year in which the senators expressed a desire for GPOs to enhance contracting opportunities for small manufacturers. Since last August, Novation has added approximately 20 new contracts to its portfolio. Novation is currently holding discussions with 12 other manufacturers about new contracting opportunities.

"Some companies that approach us or that we approach don't have products that are FDA approved yet, or we find they are similar to other products that are on the market and do not offer any distinct differences or advantages, so our members recommend against those agreements," said McKenna. "At the same time, some companies with innovative medical technologies do not want to contract with us, because it means offering member health care organizations discounted pricing on their products. For these companies, we still invite them to post their product information on our public Web site, where we have designed a section specifically to highlight new or innovative medical technologies."

Novation has awarded the following technology agreements:

1. Applied Medical Resources of Rancho Santa Margarita, Calif. for Syntel Embolectomy catheters, Gel Ports, Alexis wound retractor, and Acucise RP35 Endopyelotomy Solution

2. Cook Urological of Spencer, Ind. for Surgisis Stratasis, surgical mesh used for tissue reinforcement

3. Davol Inc. of Cranston, R.I. for the Kugel Patch, Composix Kugel Mesh and Ventrelex Mesh, proprietary products used for hernia repairs

4. Healthpoint Ltd. for antisepsis product Triseptin water-aided alcohol surgical

scrub and Triseptin waterless surgical scrub

5. Masimo Medical Inc. of Irvine, Calif. for Set pulse oximeter

6. Medi-Flex Inc. of Overland Park, Kan. for ChloraPrep antiseptic

7. Medwave Inc. of Danvers, Mass. for Vasotrac non-invasive B/P monitors

8. Novo Nordisk Pharmaceuticals of Princeton, N.J. for Innolet -- disposable, dial-a-dose, prefilled insulin doser

9. Philips Medical Systems of Andover, Mass. for SONOS 7500, 3D ultrasound 2-1-2003 cardiac imaging system

10. Stryker of Kalamazoo, Mich. for Stair-PRO stairway transport chair

11. Urosolutions Inc. of Orlando, Fla. for UroCycler specialized anti-reflux valve for use with indwelling urinary catheters

Irving, Texas-based Novation offers supply chain services to the members, associate members and affiliates of VHA Inc., the University HealthSystem Consortium and HealthCare Purchasing Partners International. These organizations annually purchase more than $21 billion worth of medical products and supplies using Novation contracts. The contracts are created based on an open competitive bidding process that incorporates input from purchasing and clinical experts from member healthcare organizations.

Source: Novation