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OneOncology Unveils Electronic Negotiating Network for the Oncology Community

Posted on: Wednesday, 16 May 2007, 12:00 CDT

OneOncology Inc., the premiere oncology drug procurement solutions provider, today unveiled an impartial electronic negotiating network for the oncology community. The reverse auction platform simplifies the oncology drug supply chain, enabling oncologists to build healthier practices and reduce administrative burdens, while providing distributors equal and more cost-effective access to community oncology demand.

OneOncology will open registration for community oncology practices and the drug distributor network in mid-June; pre-registrations are currently being accepted. More information can be found at www.OneOncology.com.

"The oncology community is facing rising costs, limited resources and evolving market and regulatory conditions," said Steven Kirchof, chief executive officer of OneOncology. "These significant challenges are forcing a change in the way oncologists buy drugs. Our mission is to unify and empower the oncology community to drive inefficiency out of the supply chain in order to reduce the procurement and distribution costs of cancer therapies and supportive care drugs."

By simplifying how oncology drugs are procured, OneOncology provides a service that is in the best interests of oncology practices, distributors and manufacturers. The company's impartial electronic negotiating network is built on accepted best practices and proven technology that have brought significant cost and time savings to a number of other industries.

Benefits that OneOncology brings to community oncology practices include:

Lowering costs by letting the open market set drug prices through a completely transparent negotiation that ensures the lowest possible price on a product line item basis;

Freeing up staff time spent on drug shopping, drug ordering and administrative tasks;

Eliminating market basket and bundled contracts to give physicians greater freedom of choice in making treatment decisions and optimizing therapies;

Improving decision-making and efficiency with an easy-to-use online order management process, and incorporation of inventory management technology or a Pyxis when required, and an intuitive dashboard that provides benchmarks for individual practices to better manage their business.

Benefits that OneOncology brings to the drug distributor network include:

Increasing profitability by providing control of top line revenue and sales cost while improving inventory control and logistics;

Increased efficiency through transparent credit processing, uniform payment terms and standardized return policies;

Lower sales and marketing costs;

Improved relationships with oncologists by increasing the level of trust and confidence associated with the procurement process;

A level playing field and open access for all distributors through a visible and impartial service

"Nearly 85 percent of all cancer treatments in the United States are performed by community oncologists," added Kirchof. "Our technology allows community oncology practices to strengthen the health of their practice and the overall oncology community by increasing the efficiency of their drug purchasing while maintaining complete control over the treatments and drug formularies they want to use."

OneOncology's electronic negotiation technology will combine individual orders from community oncology practices to allow drug distributors to bid on larger, guaranteed blocks of drug purchases on a line item basis. The combined orders achieve pricing power and purchasing volume, and allow oncology practices to observe how distributors are pricing drug transactions. Similar electronic trading networks in industries such as chemicals and fuels have seen average price decreases between 3 and 35 percent.

"The OneOncology model offers a significant contribution to the oncology community by giving practices greater confidence that they are doing everything possible to lower drug costs and improve the drug distribution system," said Dr. Bill Jordan, president of the Center for Cancer and Blood Disorders in Ft. Worth, Texas.

Registration for community oncologists and distributors will begin in mid-June 2007; pre-registrations are currently being accepted. There are no fees for oncology practices to join OneOncology.com. Additional information can be found at www.OneOncology.com.

"The current system is having an adverse affect on the quality of patient care," said Steve Coplon, chief executive officer of The West Clinic in Memphis, Tenn. "Oncology practices are under inordinate pressure to treat patients while being reimbursed below their costs. OneOncology has the promise to unify the oncology community, bring about needed changes in the drug distribution pipeline and empower the autonomy of the physician-patient relationship."

About OneOncology

OneOncology Inc. is the premiere provider of drug procurement solutions to the oncology community. The company simplifies the oncology drug supply chain through its electronic negotiating technology platform that promotes impartial, transparent procurement. OneOncology, based in Orlando, Fla., is a privately held corporation led by an experienced and skilled management team. For more information, visit www.OneOncology.com.

Source: Business Wire

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