For Immediate Release
Medline Signs 3-Year Agreement with Novation for Custom Surgical Procedure Packs
Medline Expects to Save Hospitals a Total of $15 million to $20 million Dual Source Agreement Valued
Thursday, November 29, 2007 —
Mundelein, Ill. — Medline, the nation's largest privately held healthcare products manufacturer and distributor, today announced it has been awarded a three-year agreement with Novation, whose alliance members represent more than half of all hospital admissions and total surgeries in the U.S. Medline expects to save members of the University HealthSystem Consortium (UHC), VHA and Provista between $15 million to $20 million during the contract period and this agreement has the potential to further increase savings through product standardization and utilization.
Under the terms of the dual source agreement, valued at $1.5 Billion over three years and effective February 1, 2008, Medline will manufacture and sell custom sterile surgical procedure packs to the alliances Novation serves. Each pack is made to the exact specifications of the participating hospital. In addition, Medline will provide clinical consulting and standardization services through its perioperative nurses and continuing education through Medline University.
"We're very pleased to have been chosen for this contract award for custom procedure trays based on the tremendous value we proposed to existing and new Medline customers," said Sidney Hobbs, vice president Medline National Accounts. "The agreement adds to our existing portfolio of 25 Novation contracts and underscores Medline's position as a leading supplier of quality products to the U.S. healthcare marketplace. Through this agreement, VHA, UHC and Provista member hospitals will realize significant savings and increased service over the next several years."
Quality Assurance
Medline has a 120 person staff dedicated to overseeing quality and manufacturing standards and uses class 10,000 clean room manufacturing. Medline is FDA QSR compliant and ISO 13485 registered.
Medline partners with organizations committed to improving patient care, including: 100,000 lives; the Joint Commission National Patient Safety Goals; and SCIP, Surgical Care Improvement Project.
About Novation
Based in Irving, Texas, Novation is the industry's leading contracting services company that delivers unmatched savings to more than 2,500 members and affiliates of VHA Inc. and the University HealthSystem Consortium (UHC) and over 10,000 Provista customers. By combining scale and agility with clinical knowledge and product expertise, Novation offers the most extensive range of innovative contracting services, including: contract development, contract and supplier management, custom contracting, enhanced savings programs, online contract management and analytical tools, order management and online supplier connectivity.
About Medline
Medline, the nation's largest privately held manufacturer and distributor of healthcare products, manufactures and distributes more than 100,000 products to hospitals, extended care facilities, surgery centers, home care dealers and agencies and other markets. Headquartered in Mundelein, IL, Medline has more than 800 dedicated sales representatives nationwide to support its broad product line and cost management services.
Over the past five years, Medline has been the fastest growing distributor of medical and surgical supplies in the U.S., serving as the primary distributor to over 250 major hospitals and health care systems. As a leading distributor, Medline offers a comprehensive array of consulting and management services encompassing the supply chain and logistics, utilization and standardization, business tools and enhanced reporting capabilities, and on-staff clinicians.
Medline has a growing network of 34 distribution centers around the country, as well as an expanding, dedicated transportation fleet with over 160 vehicles in a variety of sizes to fit customers' specific delivery needs. The fleet is equipped with the latest navigation devices for enhanced order tracking and communication.