IRVING, Texas, June 3 /PRNewswire/ -- Providence Health System, one of the largest integrated health care systems in the northwestern United States and one of the largest Catholic health care systems in the country, has renewed its commitment to VHA Inc., the national health care cooperative.
Under terms of the new agreement, Providence will establish a customized group purchasing model with VHA and its supply company, Novation. After functioning under a traditional group purchasing model for the past five years, the organizations will now work together to implement an innovative approach called “ProvSource.”
“This new model is an excellent example of finding another way to achieve greater flexibility and better pricing on supplies, as well as forging partnerships with other organizations for our mutual benefit,” according to John Koster, M.D., president and chief executive officer of Seattle-based Providence Health System. “As partners in this new model, we have a shared stake in its success,” he added.
Joint management oversight will be established to develop the strategies, guidelines and processes, oversee implementation and ensure successful ongoing operations of ProvSource. Additionally, VHA and Novation will dedicate full- time staff to this partnership, including individuals who will work on site with Providence staff.
“Under the new three-year arrangement, Providence will continue to benefit from the strong purchasing power and supply chain expertise of VHA, while gaining flexibility to customize contracts based on our system’s needs,” notes Mike Butler, chief financial officer at Providence. “This new arrangement will bring immediate cost savings across our system and an exciting opportunity to partner with VHA in the design and implementation of an innovative group purchasing approach.”
“We are thrilled to have the opportunity to collaborate with Providence to help it continue to provide efficient, high-quality care to communities throughout the northwestern U.S. We believe other large hospital systems around the country will want to work with us to emulate what Providence and VHA have established,” said Stuart B. Baker, M.D., executive vice president at VHA.
Providence purchases approximately $500 million in supplies, drugs and professional services annually. Approximately $317 million of the total purchases are made through VHA agreements.
Providence Health System is a not-for-profit organization that includes 17 acute care hospitals, 12 freestanding long-term care facilities, and 19 low income and assisted living facilities operating in Alaska, Washington, Oregon and California.
About VHA
Irving, Texas-based VHA Inc. is a national cooperative of leading not-for- profit health care organizations that work together to improve the health of the communities they serve. VHA leverages the collective strength of the membership to improve clinical, operational and financial performance. Also based in Irving, Novation is VHA’s supply services company. In 2003, health care organizations purchased more than $20 billion in supplies through Novation contracts.
Contact: Lynn Gentry 972/830-0798 lgentry@vha.com
Photo: Newscom: http://www.newscom.com/cgi-bin/prnh/20011017/VHALOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.comVHA Inc.
CONTACT: Lynn Gentry of VHA Inc., +1-972-830-0798, or lgentry@vha.com
Web site: http://www.vha.com/
