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VHA Improves Health Care in Kansas By Helping Hospitals Save $10.8 Million Through Supply Chain and Group Purchasing Services

Posted on: Tuesday, 8 November 2005, 09:01 CST

IRVING, Texas, Nov. 8 /PRNewswire/ -- VHA Inc., a national health care alliance, announced today that hospitals in Kansas saved more than $10.8 million in 2004 through its supply chain services and group purchasing programs, and that the hospitals are on track to exceed that savings figure in 2005. Sixty-six Kansas-based health care organizations purchased more than $180 million in health care supplies in 2004 through Novation, VHA's group purchasing organization (GPO).

Four rural Kansas hospitals, Hays Medical Center, Hutchison Hospital, Pratt Regional Medical Center and Salina Regional Health Center, collectively saved more than $4 million through VHA and Novation in 2004. These rural hospitals face obstacles in meeting patient needs that are unlike those in urban areas, including the ability to command the supplies and services they need at prices they can afford. VHA helped them collaborate to negotiate better pricing and reduce supply expenses and increase operating income -- all while keeping quality standards high.

"Finding and buying the best drugs, supplies and medical devices at the best possible prices is a big challenge particularly for smaller, rural hospitals," says Susan Page, chief executive officer of Pratt Regional Medical Center. "Through VHA and Novation, we are able to access the same expertise as larger hospitals allowing us to benefit from shared experiences."

Dozens of other hospitals and clinics in Kansas are part of the VHA alliance, including: Cheyenne County Hospital, Hiawatha Community Hospital, Lawrence Memorial Hospital, Mitchell County Hospital, Stormont-Vail HealthCare. Each hospital voluntarily participates in VHA programs that help them help save money on the best drugs, supplies, services and medical devices for their patients.

GPOs serve as extensions of hospital purchasing departments, providing special expertise, negotiating experience, electronic tools and processes to streamline buying and save hospitals hundreds of millions of dollars each year. Hospitals buying through Novation save an average of 1 percent to 3 percent, compared with purchasing on their own or through other GPOs. The savings fall immediately to a hospital's bottom line and make resources available for other uses.

"Hospitals have never been under so much pressure to provide unlimited care on limited budgets," said Randy Peterson, president and chief executive officer of Salina Regional. "The savings that hospitals realize through VHA are real, and necessary."

In addition to working with hospitals in the state, VHA and Novation have contracts with Kansas suppliers, including: Medi-Flex and Suture Express. These companies make antiseptics, wound care products, sterile instruments and endo-surgical products. Through Novation, suppliers are able to promote new and emerging technologies to the health care marketplace.

About VHA

VHA Inc., based in Irving, Texas, is a national alliance that provides industry-leading supply chain management services and supports the formation of regional and national networks to help members improve their clinical and economic performance. With 18 offices across the U.S., VHA has a track record of proven results in serving more than 2,400 health care organizations nationwide.

CONTACT: Lynn Gentry 972/830-0798 lgentry@vha.com

VHA Inc.

CONTACT: Lynn Gentry of VHA, Inc., +1-972-830-0798, or lgentry@vha.com

Source: PRNewswire

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