|
hpnonline Daily Update |
||||||||||
|
|
July 2002
HIGPA releases GPO code of conduct
The Health Industry Group Purchasing Association has adopted a Code of Conduct Principles for group purchasing organizations. HIGPA presented the code to federal lawmakers earlier this week. In a letter Monday to Sen. Herbert Kohl, D-WI and chair of the Judiciary Committee's antitrust, competition, and business and consumer rights subcommittee, HIGPA President and CEO Robert Betz said the organization unanimously adopted the code July 24. Kohl had requested on April 30 for the establishment of an industrywide code of conduct. The code specifically addresses three major concerns Kohl expressed at the April 30 hearing: conflicts of interest, contracting practices and cost savings. The code also includes a code of conduct certification program, appointing a code of conduct compliance officer at each GPO and establishing a publicly accessible directory of vendor information. For more information, go to www.higpa.org.
HHS study: Nursing crisis to dip deeper
The nations' nursing shortage will steadily increase over the next 20 years if current trends continue, according to a new study by the U.S. Department of Health and Human Services. The report - "Projected Supply, Demand and Shortages of Registered Nurses: 2000-2020 - says the growing number of nurses retiring from the profession far outweighs the number of new hires. Two years ago, there was a 6 percent shortage; there were about 1.89 million nurses working but the demand was estimated at 2 million. The report predicts the shortage will jump to 12 percent by 2010, to 20 percent to 2015 and to 29 percent by 2020. For more information, go to bhpr.hrsa.gov/healthworkforce/rnproject.
MedAssets partners with CareMedic
MedAssets, Inc., an Atlanta-based procurement and cash management services company for healthcare institutions, announced an alliance with CareMedic Inc., a healthcare solutions firm specializing in Medicare reimbursement software and services. The partnership extends MedAssets' product line, enhancing the company's focus on revenue enhancement and supply chain efficiencies for healthcare institutions. "The partnership adds a strong offering to our already extensive list of services, each of which contributes to improving a healthcare institution's financial performance," said Gary Johnson, vice president of marketing, MedAssets Inc. "We're extremely excited about the partnership with CareMedic and look forward to offering our clients this valuable service." Beyond its group purchasing activities, MedAssets provides outsourced strategic financial management solutions to help transform the business of healthcare. CareMedic offers the ability to improve an institution's cash flow by minimizing write-offs of unsettled Medicare Claims previously thought uncollectable.
Memorial Sloan-Kettering, SciQuest sign agreement
Memorial Sloan-Kettering, a leading institution in the prevention, treatment and cure of cancer, has signed a multiyear license renewal for using SciQuest's SelectSite SRATM, a Web-based e-procurement application. SelectSite is a requisitioning and catalog management solution for laboratory products, designed for research-intensive organizations seeking to enhance their enterprise procurement software with a researcher-centric "one-stop-shop" application that can reduce off-catalog, off-contract and noncontract spending. SciQuest is a software, information and services company that provides solutions to enhance research operations for pharmaceutical, biotechnology and other research-based organizations.
Last national park hospital may expire
Yellowstone National Park might lose something no other national park has - its own hospital. So says a recent article in the (Salt Lake City, UT) Deseret News. The Cody, WY-based West Park Hospital District, otherwise known as Yellowstone Park Medical Services, has supplied and staffed Yellowstone's Lake Hospital for more than 20 years. But those ties are likely to be cut when Lake Hospital's contract expires at the end of the year, according to the article. "Overhead is killing us," Doug McMillan, CEO of West Park Hospital, told the Deseret News. "We've lost money." The National Park Service requires that West Park provide two doctors "on a 24-hour basis" and lab, X-ray, nursing, pharmacy and housekeeping personnel. Whether another healthcare organization will pick up the contract or if the hospital will be converted to an urgent-care facility or clinic remains unclear, the article states.
Novation awards Coverlet contract
Novation, a leading supply chain management company in the healthcare industry, has awarded a contract for its Coverlet latex-free fabric adhesive dressings to Charlotte, NC-based BSN-JOBST, a manufacturer of products for people with venous disease or swelling related conditions. Terms of the contract were not disclosed.
Colorado's Exempla Healthcare purchases 78-acre parcel
Exempla Healthcare has purchased a 78-acre parcel in Lafayette, CO, on which it plans to construct a $240 million hospital and medical offices, according to a recent Denver Post article. Exempla purchased the land from Etkin Johnson Group, a Denver-based real estate developer, for $24 million. Exempla's planned 800,000 square feet of medical facilities includes a 143-bed hospital.
St. Francis Memorial begins construction project
San Francisco-based St. Francis Memorial Hospital has begun a $62 million construction project to bring itself up to state seismic standards. Under California regulations, hospitals have until 2008 to retrofit facilities or 2030 to complete reconstruction. The Healthcare West-owned St. Francis expects that it will receive a construction extension and that the retrofit will be complete by 2010.
Heart Center of Indiana, Siemens sign 10-year agreement
The Heart Center of Indiana, Indianapolis, has signed a 10-year agreement with Siemens Medical Solution to outfit the hospital with cardiology equipment. The Heart Center is a $60 million specialty heart hospital scheduled to open in December. Under the terms of the agreement, Siemens will provide imaging and patient monitoring equipment, information technology solutions, and business office and support services. Siemens Information and Communications Networks will supply the specialty heart hospital with a complete telecommunications network, including an IP-enabled communications system, voice messaging, and comprehensive system management tools.
Premier healthcare alliance sells clinical technology business to ARAMARK
Premier Inc., Charlotte, NC, announced that it is selling its Clinical Technology Services (CTS) business to ARAMARK. Under the terms of the sale agreement, ARAMARK will continue to provide technology management and equipment maintenance and repair services to the more than 180 existing healthcare clients served by Premier. "We are confident that ARAMARK will continue to deliver the same level of high quality service and attention to CTS customers that made this business a success for Premier," Larry Abramson, Premier senior vice president for Supply Chain Solutions, said in a company release. "The move of CTS to ARAMARK will provide an exceptional opportunity for the business to grow and thrive with an owner that is committed to ongoing market leadership in the equipment services arena. ARAMARK is a leader in providing these types of services in healthcare and many other sectors. This continues to be an important service for Premier hospitals and health system members."
Abbott to use barcodes for hospital injectable pharmaceuticals and IV solutions
Abbott Laboratories, Abbott Park, IL, has pledged that it will affix unit use of barcodes to all of its hospital injectable pharmaceuticals and IV solutions product lines. The initiative, due in place by early 2003, is part of a comprehensive initiative by Abbott to help reduce medication errors. The company has already assigned barcodes to about 45 percent of some 1,000 injectable pharmaceuticals and expects that number to increase to 70 percent by the end of the year. About 25 percent of Abbott's injectables and IV solutions will use a new technology - Reduced Space Symbology (RSS) - which allows for a miniaturized bar code to be applied to single-unit containers as small as a pen cap, according to the company.
"Abbott's actions are a major step forward for the health care industry - and, most importantly, a vital victory for millions of hospital patients," said Michael R. Cohen, president of the Institute for Safe Medication Practices and author of the book Medication Errors. "Abbott's work in testing and now implementing RSS technology will significantly enhance patient safety, and spark additional advances."
Nominations coming in for HPN's Central Service Department of the Year contest
For the second consecutive year, Healthcare Purchasing News will honor top-performing central service departments with the HPN CS Department of the Year contest. Several nominations have been received so far, and more are expected. The award gives central service departments a chance to demonstrate their contributions to quality patient care, hard work and efficiency. Judging will focus on customer service, productivity, teamwork, strategic outlook and education/training. To enter your hospital in the 2002 competition, mail, fax or e-mail your nominations, including as much detail as you feel necessary, to Curt Werner, Editor, 2500 Tamiami Trail North, Nokomis, FL 34275; Fax 941-966-2590; E-mail: editor@hpnonline.com. Deadline for entry is Monday, Sept. 30. In 2001, Via Christi Regional Medical Center in Wichita, KS was the big winner. This year's winners will earn front-page recognition in the December 2002 issue of HPN.
BOC, Novation sign medical gases agreement
Murray Hill, NJ-based BOC and Novation, Irving, TX, have entered into a multi-year agreement to offer bulk and compressed gases to members and affiliates of VHA Inc. and the University Health System Consortium (UHC). BOC currently has long standing supply contracts with many members of VHA, a national healthcare alliance with more than 2,200 member community-based hospitals across the U.S. Under the terms of the new agreement, BOC will renew its contracts with VHA, which are estimated to be more than $100 million in sales, and offer its services to the balance of VHA's membership as well as UHC's almost 200 member academic medical centers. The BOC contract allows VHA and UHC members to choose among a set of optional services such as BOC's Tel-Tank telemetry system for remote monitoring of on-site bulk storage tanks; vendor managed inventory systems that manage customers' complete gas and equipment requirements; and a wide variety of eBusiness tools designed to reduce the total cost of gases ownership.
AmeriNet expands PRS agreement
AmeriNet Inc. is expanding its contracts with PRS Pharmacy Services. Effective July 1, PRS' current contract, which offers AmeriNet members discounts on preferred pharmacy leadership and medication use services, placement on demand (pharmacist recruiting) and retail development services, will also extend to PRS' staffing services. On Aug. 1, the contract also will extend to pharmacy technician staffing.
Vital Signs enters three-year contract with Consorta
Vital Signs Inc., Totowa, NJ, announced the award of a three-year dual source supply agreement with Consorta Inc., Rolling Meadows, IL. Effective Aug. 1, the agreement includes Vital Signs' anesthesia breathing systems, facemasks, airways, heat moisture exchangers, filters and gas sampling products. Vital Signs' newest patented breathing system, LIMB-O, is included. LIMB-O can replace several types of breathing circuits used in the hospital setting. In the operating room, it replaces traditional adult and pediatric circuits, and it may be used for ventilation during transport to the PACU as well as become the volume ventilator circuit in the ICU.
Report: AmeriNet owns small slice of Masimo
While nearly all the focus of this year's group purchasing organization controversy has been on Premier Inc. and Novation, other GPOs have escaped a version of notoriety that hardly seek. No longer. A report has surfaced that St. Louis-based AmeriNet has quietly owned a small stake in Masimo Corp., the Irvine, Calif.-based manufacturer of pulse oximetry equipment that has been a poster child for small device-makers seeking entry into the realm of national accounts. Modern Healthcare is reporting that AmeriNet has held a minority ownership position in privately held Masimo since 2000, several months after AmeriNet contracted with the company for pulse oximetry equipment. According to the report, AmeriNet's investment of $365,000, at a fair market value of $11 per share, bought a .002 percent stake in Masimo, though Masimo insists that AmeriNet purchased its shares through an independent third party with no strings attached.
A Masimo official says that when measured against the $90 million Masimo raised in eight rounds of private equity financing, AmeriNet's investment is minuscule.
AmeriNet president Robert "Bud" Bowen said that when AmeriNet learned a small investor wanted to liquidate its stock in Masimo, the GPO agreed to buy it.
"We paid for the stock with our own money and got nothing in return,'' Bowen said.
"We were at risk and in doing so, we helped a company get off the ground and develop.'' Bowen added he recently warned Masimo officials
"this may come up and bite'' them, and offered to divest its interest even though
"we don't have a problem with what we did.''
Premier is cool with Medline deal
Premier Inc. has reached agreement with Medline Industries, Mundelein, IL, on a contract that adds Medline's Soothe & Cool line of incontinent and bathing care products to its current contract for disposable basin bathing products called ReadyBath. The two-year agreement took effect July 1. The Soothe & Cool line includes perineal wash, shampoo, body lotion, bath oil and other skin care products.
Owens, Perot Systems in high-tech pact
Owens & Minor Inc., the Richmond, VA-based med-surg distributor, has signed a seven-year IT hosting and services agreement with Perot Systems Corp., Plano, TX, that is valued as high as $229 million. Under terms of the deal, Perot Systems will leverage its expertise and centralized computer processing and buying power to reduce Owens & Minor's hardware and software costs and further improve its IT operations. This agreement expands Owens & Minor and Perot Systems existing outsourcing relationship.
Neoforma to review share issues; announces record 2Q02 volume
Could the same malaise that has dogged the stock market over corporate accounting practices wreak havoc with Neoforma? Yesterday, in a conference call to report second quarter results, the San Jose-based medical supply e-commerce firm said it is reviewing whether shares approved for issue in July 2000 to VHA should have been fully capitalized at the time they were approved or when the performance criteria upon which their disbursement was based were met. Neoforma also said it is reviewing how it is classified the amortization of equity issued to some of its partners. Taken together, the company said it may have to restate results going back to the third quarter of 2000, and that it may reach net profitability sooner than expected.
The generally positive financial results reported by Neoforma yesterday, which included a record $998.9 million in total marketplace volume during the second quarter, driving revenue of $17.6 million and increased EBITDA profitability of $4.6 million, were overshadowed by the news of the company's upcoming review of two complex accounting issues relating to shares issued to VHA, University HealthSystem Consortium and Novation. Not surprisingly, the news did not go over well to a shell-shocked investment community. Within hours of the call, WR Hambrecht recommended that "risk-averse investors stay on the sideline until some of the accounting related uncertainty is eliminated, but recommends investors with a high risk tolerance and a longer time horizon take advantage of weakness in the stock price."
AHA hits back at Chicago Tribune report on infections
The American Hospital Association called a Chicago Tribune investigation into hospital-acquired infections "a misleading picture of infection control practices in most hospitals." Despite that, the AHA conceded that the report "does highlight the serious problem of infection control that hospitals fight every day." Don Nielsen, AHA senior vice president for quality leadership, says what's missing from the Tribune series -- which he said focuses on anecdotes from the past - is a greater focus on what's happening today. Nielsen said preventing infections is a never-ending process within hospitals. He said that hospitals are adopting new tools, such as waterless hand cleaner, and other products and techniques, that enhance infection control efforts.
The Tribune said infections in hospitals in 2000 were responsible for roughly 100,000 deaths each year, with three quarters being preventable. The report says infections are attributable to unsanitary facilities, germ-laden instruments, and unwashed hands. The Tribune analyzed records from 75 federal and state agencies, among other sources.
JCAHO sets 2003 National Patient Safety Goals
The Joint Commission's Board of Commissioners has approved for implementation effective January 1, 2003 a set of six National Patient Safety Goals representing 11 recommendations for improving the safety of patient care. In brief, the Joint Commission 2003 National Patient Safety Goals and associated recommendations are:
Novation sharply denies Times allegations
Last week, an article in the
New York Times alleged improprieties in payments of $1.1 million made by Becton Dickinson, Franklin Lakes, NJ, involving a needle and syringe contract with Novation, the Irving, TX-based purchasing arm of VHA Inc. and University HealthSystem Consortium. Healthcare Purchasing News has obtained a memo sent on Friday by Novation president Mark McKenna to Novation employees regarding the Times piece. In the memo, McKenna says the Times "inaccurately depicts Novation's relationship with Becton Dickinson." He goes on to say that the agreements with BD, "like all Novation agreements, were awarded based on both quality and cost factors and were made with the support and endorsement of the member advisory councils involved: the Nursing Council, Materials Management Council, and Needle and Syringe Task Force. And, Novation, VHA and UHC are confident that their business practices are ethical and lawful." As evidence, McKenna offers documents that he says were sent to the Times reporters that detail Novation's contracting history with BD for the last four years and provides details on how those contracting decisions were made.
According to McKenna, Becton Dickinson paid the $1 million "to offset an estimated loss of revenue value to members because the fees to be paid by BD under the new agreement were lower than the fees paid by the previous needle and syringe supplier." He asserted that the $1 million "did not have a determining effect on the outcome of the award to BD. Rather, the award was based on product quality and price, with significant member involvement. In other words, Novation awarded the contract to BD which offered high quality product at lower prices to members and lower fees to Novation than the incumbent supplier, Sherwood."
Read the August and September issues of Healthcare Purchasing News for more on the GPO controversy.
J&J denies connection of illnesses to Puerto Rican factory problems
Johnson & Johnson insisted that accusations made by a former worker at a factory in Puerto Rico have "no connection" to a recent spate of illnesses in patients using the drug produced at that factory. The company also said that the factory had been inspected twice in the last year by health authorities, who found only minor problems. The statements came a day after a report in The New York Times said that the Puerto Rico plant had become the subject of a federal criminal investigation. Shares of Johnson & Johnson plunged $7.88, or 16 percent, to $41.85. The Puerto Rico factory produces Eprex, an anemia drug that is sold only outside the U.S. In recent months, health authorities in Europe and Canada have been concerned by a rise among Eprex users of pure red cell aplasia, a condition in which the body can no longer produce red blood cells, often leaving a patient dependent on transfusions.
Reports say that it is still unclear whether the criminal investigation is related to the health problems in Europe. The inquiry is connected to a whistle-blower lawsuit filed against Johnson & Johnson by Hector Arce, a former worker at the factory. Mr. Arce, who was fired in 1999, contends he was pressed to falsify documents, in some cases to cover up manufacturing lapses. Johnson & Johnson said yesterday that it thoroughly investigated Mr. Arce's accusations and could not corroborate them. It said Mr. Arce worked on the factory's utilities, not directly in manufacturing, and was fired for failing to properly complete equipment records.
Novation signs radiology deal with Hologic
Irving, TX-based Novation last week signed a sole-source, multi-year agreement with Hologic Inc., Bedford, MA, that covers the Fluoroscan line of mini C-arm imaging systems. According to a press release, the award to Hologic was unanimously supported by the VHA and UHC member-based Novation Diagnostic Imaging Council. In addition to the Diagnostic Imaging Council, Novation surveyed VHA and UHC directors of radiology and materials management to gain member input. The three-year agreement takes effect September 1 and runs through August 31, 2005.
Report: Novation paid $1.1 million by B-D for needle pact
Even as group purchasing organization leaders and lobbying groups scurry to put the finishing touches on a Code of Conduct that would help police future contracting activities and relieve pressure from the U.S. Senate, the GPO industry finds itself reeling from yet another public blow. The latest hit came this morning in the New York Times, the newspaper that has become GPOs' fiercest adversary, in the form of an article alleging that Novation, the big Irving, TX-based GPO, received two payments totaling about $1.1 million from Becton Dickinson & Co., Franklin Lakes, NJ, the nation's leading maker of hypodermic needles. The article quoted legal experts as being troubled" by news of the payments to Novation "because they might be construed as kickbacks if they were used to obtain business."
FDA cautions that some medical devices may cause toxic phthalate exposure
Some medical procedures may expose people to a toxic dose of a phthalate called DEHP, and alternatives should be used if available, according to a letter sent to medical professional societies by the FDA. The letter follows up on an FDA study of DEHP (di(2-ethylhexyl) phthalate) safety, issued in September. DEHP is a chemical used to soften plastic, mostly polyvinyl chloride (PVC). In the letter, the agency says DEHP might be found in I.V. bags and tubing, blood bags, nasogastric tubes, dialysis bags and tubing, as well as other tubing used to support and feed premature infants.
Neonates are likely to get the highest exposure to DEHP, through procedures like exchange transfusion, total parenteral nutrition, and extracorporeal membrane oxygenation, said the agency. Adolescent boys and pregnant or nursing women who receive dialysis are also at risk for toxic exposure, as are heart transplant recipients, and patients who undergo bypass surgery, or receive large amounts of blood replacement after trauma.
Illnesses from anemia drug put J&J under pressure
The government is conducting a criminal investigation into a factory operated by Johnson & Johnson that makes an anemia drug that has been linked to a spate of serious illnesses in Europe and Canada, according to court documents and people close to the situation. IN a report published in today's New York Times, the factory, which is located in Puerto Rico, manufactures Eprex, a drug used to increase the levels of red blood cells in people who are undergoing kidney dialysis or suffering from anemia caused by chemotherapy. According to the report, health authorities in Europe and North America have become increasingly concerned over the last few months about a mysterious rise in the number of Eprex users who have developed pure red cell aplasia, a condition in which the body can lose its ability to produce red blood cells, leaving the patient dependent on blood transfusions to survive.
The joint FDA and Justice Department investigation is tied to a whistle-blower lawsuit filed against Johnson & Johnson by Hector Arce, a former employee at the factory. Arce, who was fired in March 1999, contends he was pressed to falsify data to cover up manufacturing lapses and then was suspended a few days before an expected interview with F.D.A. inspectors. Johnson & Johnson denies the accusations, saying that. Arce was a boiler operator not directly involved in the manufacture of Eprex and that he was fired for numerous violations of company procedures and for dishonesty.
The article said it is as yet unclear whether the government suspects that manufacturing violations are responsible for the illnesses suffered by Eprex patients. A person close to the situation said, however, that the government became active only this spring as concern about the illnesses grew. A year earlier, the government had declined to intervene in the lawsuit.
Nominations coming in for HPN's Central Service Department of the Year contest
For the second consecutive year, Healthcare Purchasing News will honor top-performing central service departments with the HPN CS Department of the Year contest. Several nominations have been received so far, and more are expected. The award gives central service departments a chance to demonstrate their contributions to quality patient care, hard work and efficiency. Judging will focus on customer service, productivity, teamwork, strategic outlook and education/training. To enter your hospital in the 2002 competition, mail, fax or e-mail your nominations, including as much detail as you feel necessary, to Curt Werner, Editor, 2500 Tamiami Trail North, Nokomis, FL 34275; Fax 941-966-2590; E-mail: editor@hpnonline.com. Deadline for entry is Monday, Sept. 30. In 2001, Via Christi Regional Medical Center in Wichita, KS was the big winner. This year's winners will earn front-page recognition in the December 2002 issue of HPN.
Quit bellyaching: More reports surface of unnecessary surgery
Researchers reporting in the July issue of Archives of Surgery say surgeons are still removing healthy appendixes, despite the development of better diagnostic tests for appendicitis. Naturally, these surgeries come at a significant cost to both patients and the healthcare system. Plus, many patients end up with a prolonged hospital stay: almost six days on average. The average appendectomy costs almost $19,000. The total bill for hospital charges associated with unnecessary appendectomies in the U.S. in 1997 was $741.5 million, the researchers estimated.
HealthTrust in anesthesia pact with Dräger
Nashville-based HealthTrust Purchasing Group has signed a three-year agreement with Dräger Medical Inc., Teleford, PA, that covers Dräger's complete line of anesthesia systems and accessories. The contract, which took effect May 1, is the second for Dräger with HealthTrust, joining a critical care ventilator deal signed in March 2001.
GE donates ultrasound systems to humanitarian group
GE Medical Systems, Milwaukee, has donated more than 200 ultrasound systems, probes and accessories to Assist International, a non-profit humanitarian organization that provides high-tech medical equipment to hospitals and clinics in developing countries. The GEMS ultrasound units, valued at approximately $6.5 million, will end up in such countries as Afghanistan, Rwanda, Sudan and Zanzibar, where doctors have little access to modern diagnostic equipment.
HPN kicks off Central Service Department of the Year contest
For the second consecutive year, Healthcare Purchasing News will honor top-performing central service departments with the HPN CS Department of the Year contest. The award gives central service departments a chance to demonstrate their contributions to quality patient care, hard work and efficiency. Judging will focus on customer service, productivity, teamwork, strategic outlook and education/training. To enter your hospital in the 2002 competition, mail, fax or e-mail your nominations, including as much detail as you feel necessary, to Curt Werner, Editor, 2500 Tamiami Trail North, Nokomis, FL 34275; Fax 941-966-2590; E-mail: editor@hpnonline.com. Deadline for entry is Monday, Sept. 30. In 2001, Via Christi Regional Medical Center in Wichita, KS was the big winner. This year's winners will earn front-page recognition in the December 2002 issue of HPN.
Medibuy: $1 billion in total 2002 transaction volume expected
Nashville-based Medibuy said this week it has enabled HCA acute care facilities to achieve their next major electronic ordering milestone - managing purchase orders and subsequent transactions electronically, in real-time through a single, secure Internet connection to Medibuy's Marketplace. HCA is now transacting through the Marketplace, Medibuy's electronic exchange, with McKesson and Medline and will be transacting with Allegiance by the end of this month, representing over $475 million of HCA's annual purchasing volume. Medibuy, which currently has agreements representing more than 535 healthcare facilities with more than 435 facilities already integrated into its products and services, says it expects to exceed $1 billion in total Marketplace transaction volume before the end of the year.
Plasma irradiation of medical equipment could cut nosocomial infection rates
According to a report from German researchers, a process for sterilizing medical instruments with plasma radiation could reduce nosocomial infections without damaging delicate equipment. Dr. Wolf-Dieter Jlich from the Institute of Non-Thermal Plasma-Physics at the University of Greifswald said the method was gentler on highly sensitive instruments than the current sterilization processes.
"Standard processes of sterilization are based on killing germs through heat, gamma rays or chemicals--but these leave destructive traces on the sensitive instruments," he told Reuters Health. "The intensive antimicrobial activity of plasma radiation, which includes sporicidal as well as viricidal effects, is well known. On the other hand, the non-ionizing nature of radiation makes it very useful for antimicrobial treatment of many products of unstable composition that cannot be sterilized by conventional methods. Consequently, it is of great interest to look for ways to optimize the plasma irradiation technique to effectively combine its high antimicrobial activity with a careful treatment of sensitive materials and products."
MAGNET breathes easy after signing airway products pact
MAGNET Inc., the GPO based in Mechanicsburg, PA, announced this week the signing of a three-year sole source contract with San Diego-based LMA North America Inc. for its full line of LMA airway products. The agreement took effect July 1.
OSHA targets infection risks at nursing facilities
The Occupational Safety and Health Administration yesterday unveiled a new program centering on outreach efforts and inspections on specific hazards such as ergonomics in nursing and personal care facilities with high injury and illness rates. The plan, called the National Emphasis Program will focus its efforts and inspections primarily on hazards most prevalent in the nursing facilities such as ergonomics primarily related to resident handling; exposure to blood and other infectious materials; exposure to tuberculosis; and slips and falls. OSHA is planning to inspect approximately 1,000 facilities under the program. OSHA will turn its resources to those nursing and personal care facilities that have 14 or more injuries or illnesses resulting in lost work days or restricted activity for every 100 full-time workers.
Daughters of Charity in IT outsource deal with Perot Systems
California-based Daughters of Charity Health System has signed a seven-year, $60 million information technology services agreement with Dallas-based Perot Systems. Seven other companies offered bids for the contract, which includes infrastructure, applications, help desk, intranet Web development and project management services agreement in a competitive bid process that included seven other firms.
Premier signs agreement with LabCorp
Premier Inc. and Laboratory Corporation of America Holdings have agreed on terms of a national contract that covers services offered by LabCorp's nationwide network of clinical reference laboratories and the more than 4,000 diagnostic tests performed by LabCorp facilities.
HPN kicks off Central Service Department of the Year contest
For the second consecutive year, Healthcare Purchasing News will honor top-performing central service departments with the HPN CS Department of the Year contest. The award gives central service departments a chance to demonstrate their contributions to quality patient care, hard work and efficiency. Judging will focus on customer service, productivity, teamwork, strategic outlook and education/training. To enter your hospital in the 2002 competition, mail, fax or e-mail your nominations, including as much detail as you feel necessary, to Curt Werner, Editor, 2500 Tamiami Trail North, Nokomis, FL 34275; Fax 941-966-2590; E-mail: editor@hpnonline.com. Deadline for entry is Monday, Sept. 30. In 2001, Via Christi Regional Medical Center in Wichita, KS was the big winner. This year's winners will earn front-page recognition in the December 2002 issue of HPN.
Testing 1,2,3,4: Premier signs Roche to diagnostic deals
Premier Inc. has signed four agreements with Indianapolis-based Roche Diagnostics Corp. that cover a range of products and services for blood glucose monitoring, chemistry, immunochemistry and hematology. Estimates are that the combined value of the contracts could reach as high as $650 million annually. The agreements each took effect July 1. The blood glucose deal runs through September 30, 2003, with two one-year renewal options, while the chemistry, immunochemistry, and hematology agreements also commenced will stay in effect through March 31, 2004, also with two one-year renewal options.
For $186,000, Dr. Koop site acquired by nutraceutical seller
Vitacost.com, a privately held, online source of consumer health information, health products and nutraceuticals announced today it has acquired DrKoop.com, the consumer health website that has struggled under the weight of financial obligations. Vitacost paid just $186,000 in cash to acquire DrKoop.com, which was among the first and largest online providers of consumer health information. Founded in 1997, DrKoop.com was funded with more than $200 million and reached a market capitalization of more than $1 billion before the crash of the Internet stock market precipitated the company's bankruptcy filing in December 2001.
The Dr. Koop site is said to attract more than 900,000 visitors per month and has a database of more than 2 million registered users. Vitacost says that its acquisition will result in a "thorough update of information pertaining to mainstream medicine and the addition of information about natural/alternative medicines." This content will be updated daily after the site's initial
relaunch.
Adventist Health inks floor-covering pact
Adventist Health, Roseville, CA, a not-for-profit health care system affiliated with Premier Inc., announced it has signed an agreement with C&A Floorcoverings, Dalton, GA, a manufacturer of commercial floor-covering products.
Adventist Health is a faith-based IDN with 20 acute care facilities -- controlled, managed or leased -- representing more than 3,200 beds, 16,500 employees, numerous clinics and outpatient facilities and 18 home health agencies.
In France, growth hormone treatment led to CJD death
A French court this week ordered two medical associations to pay damages to the family of a woman who died of Creutzfeldt-Jakob after receiving growth hormone therapy. The patient, Pascale Fachin, died in June 2001 of CJD at the age of 30. She had received six months of hormone treatment to correct her height in 1985, a time when U.S. laboratories had stopped providing such medication because of contamination risks. The patient's family argued at the court in the southern city of Montpellier that the Pasteur Institute and the now-defunct France-Hypophysis association had provided the woman with defective products.
The court ordered the two institutions to pay the family a total of 394,000 euros as well as several thousand euros to friends who looked after Fachin during her illness.
Pascal Jonquet, the Fachin family's lawyer, welcomed the court ruling, charging that "the Pasteur Institute and France-Hypophysis played sorcerer's apprentice without the necessary competence or means of control."
JPC all aglow following new radiology contract
New York-based GPO Joint Purchasing Corporation and Elekta, a supplier of radiation oncology and radiosurgery solutions for precision radiotherapy and neurosurgery based in this country in Norcross, GA, have agreed on terms of a pair of three-year contracts. The deals offer access to Elekta's radiation therapy and associated products.
Novation awards clinical chemistry pact to Ortho-Clinical
Novation, Irving, TX, the supply company of VHA Inc. and University Health System Consortium has signed a three-year contract with Ortho-Clinical Diagnostics, a Johnson & Johnson company based in Raritan, NJ, for the Vitros Clinical Chemistry Systems. The contract, which took effect July 1, includes the Vitros 950 and Vitros 250 chemistry systems. The deal has two one-year renewable options at Novation's discretion. The products are available for purchase directly from Ortho-Clinical Diagnostics or through Novation's laboratory distribution partner, Allegiance Healthcare Corporation, McGaw Park, IL.
FDA tool details reprocessing requirements for single-use devices
The FDA’s Center for Devices and Radiological Health announced it has developed a CD-ROM for hospitals detailing the regulatory requirements that a hospital must meet if it reprocesses single-use devices. Titled "An Overview of the Regulatory Requirements for Reprocessing of Single-Use Devices by Hospitals," the two-disc CD covers topics such as labeling, medical device tracking and problems with reprocessing. The FDA deadline for active enforcement of premarket notification submission requirements for class II SUDs begins Aug. 14. Hospitals can order free copies of the discs, while supplies last, by visiting www.fda.gov/cdrh/reuse/reuse-important.shtml.
Study exposes weaknesses of osteoarthritis surgery
The results of a study to be published today in The New England Journal of Medicine show that a popular operation for arthritis of the knee worked no better than a sham procedure in which patients were sedated while surgeons pretended to operate, according to the New York Times. Arthroscopic surgery used to treat pain and stiffness caused by osteoarthritis is performed on at least 225,000 middle-age and older Americans each year at a cost of more than a billion dollars to various payers, including the federal government.
In the study, investigators at the Houston Veterans Affairs Medical Center and Baylor College of Medicine report that while patients often said they felt better after the surgery, their improvement was little more than wishful thinking. Tests of knee functions revealed that the operation had not helped, and those who got the placebo surgery reported feeling just as good as those who had had the real operation. The study dealt only with arthroscopic surgery for osteoarthritis, not with other common knee operations.
"Here we are doing all this surgery on people and it's all a sham," said Dr. Baruch Brody, an ethicist at Baylor who helped design the study.
Needlestick prevention group adds eight new members
ISIPS, the first international sharps injury prevention group announced the addition of eight new members: Tyco Healthcare/Kendall, Mansfield, MA; OMI, Logan City, Australia; Horizon Medical Products Inc., Manchester, GA; MediSafe-guard Products, Piscataway, NJ; ECM Corporation, Clinton, WA; Medi-Dose Inc./ EPS Inc., Warwick, PA; and the International Association of EMTs and Paramedics.
Neoforma expands Trading Partner Services
Neoforma Inc. expanded its Trading Partner Services offerings and customer base with the acquisition of new products yesterday that provide market intelligence and contract administration capabilities for healthcare manufacturers and distributors, including sales tracing and charge-back processing. In the transactions, San Jose, CA-based Neoforma acquired HPIS and
med-ecom, and will manage those assets in a wholly owned subsidiary.
HPIS (Healthcare Products Information Services) offers subscription-based services that identify market opportunities, measure market share and evaluate sales force performance and management. These services involve aggregating, normalizing, indexing and then reporting on transactional data provided by many of the distributor members of the Health Industry Distributors Association, while maintaining agreed upon data confidentiality and privacy. Healthcare manufacturers and distributors use this standardized and customized critical market intelligence to develop strategies to optimize their market performance.
med-ecom provides subscription-based contract management and administration products and services. Services include the retrieval and preparation of manufacturer and distributor data to allow sales tracing and charge-back processing. Distributors use these services to keep track of products sold and to improve the management of the contract pricing and rebate processes.
VHA in PC pact with IBM
Irving, TX-based VHA Inc. has signed an agreement with IBM, Armonk, NY, that covers hardware products, including desktop and notebook computers, servers and workstations, offered to the nationwide VHA network of 2,200 community-owned healthcare organizations. The agreement is intended to help participating organizations improve their overall efficiency, reduce costs and improve work force productivity. Systems offered under the agreement emphasize security, ease of management and lower overall cost of ownership, says K. Jeffrey Hayes, VHA's senior vice president of business operations.
Staff meeting: Shared Services in deal with CompHealth
Atlanta-based Shared Services Healthcare announced it has signed a one-year agreement with CompHealth, Salt Lake City, that covers staffing and credentialing services. Under the agreement, CompHealth will provide physician, allied health, nurse and executive staffing as well as credentialing services to participating SSH members. CompHealth is one of the nation's largest providers of healthcare recruiting and staffing services. The company’s credentialing division has verified the credentials of more than 100,000 healthcare professionals since 1979.
Consorta awards contract to SensorMedics
Consorta, Inc., Rolling Hills, IL, has awarded SensorMedics, Yorba Linda, CA, a subsidiary of VIASYS Healthcare Inc. a sole-source preferred contract covering high frequency oscillatory ventilators, pulmonary and metabolic analyzers and a dual source preferred award for sleep diagnostics equipment. The contract period for the product lines is July 1, 2002 through June 30, 2004.
Hospital shutdowns level out
Sixty-four acute care hospitals, about 1.4 percent of the nation's total, shut down in 2000, mostly because of low occupancy and competition, according to a report by HHS' inspector general's office. According to a report from the American Hospital Association, the same number of hospitals closed in 1999; however, 29 hospitals opened or reopened in 2000, compared with just 22 in 1999. About two-thirds of the hospitals that closed in 2000 were located in urban areas. At least 19 of the closures reflected reorganizations or mergers and 14 closures occurred because hospitals opened new facilities.
JPC zooms in on radiation dosimetry pact
New York-based GPO Joint Purchasing Corporation and the ICN Worldwide Dosimetry Service have agreed on a contract that offers radiation dosimetry solutions to the group's members. The services are used for measuring ionizing radiation in hospitals, medical and dental offices, and university and national laboratories.
Premier in MAX deal with McKesson
Premier, Inc. will offers its member hospitals McKesson Medical-Surgical's new MAX Merit Customer Rewards Program thanks to an agreement announced this week. The MAX Merit program, which rewards customers who achieve volume and so-called behavioral goals through quarterly rebate incentives, is a partnership offered by McKesson and many manufacturers. The program targets 16 key categories from wound care to orthopedics and patient care items to surgical gloves. An incentive matrix rewards customer buying behavior and those who use McKesson's proprietary programs.
MAGNET to offer Source Atlantic products
MAGNET, the Harrisburg, PA-based GPO, has signed an agreement with Source Atlantic to offer its Web-based Capital Management Platform, Hourglass and partnership services to the MAGNET members. Using Hourglass, MAGNET members and their participating healthcare facilities can aggregate their project capital needs with their year-to-year requirements to standardize and optimize the capital budget process. Source Atlantic also offers partnership services such as assessment, inventory, forecasting, equipment planning, aggregation, procurement, and asset management.
Southern Nevada trauma centers losing doctors due to higher malpractice premiums
Facing increased malpractice insurance premiums, some Southern Nevada hospital staff physicians are likely to leave their jobs rather than risk liability from treating trauma patients, according to a state hospital official. "The question is not 'if' but 'how many?'" Bill Welch, president of the Nevada Hospital Association, told the Las Vegas Sun last week. "We certainly have that fear, and I know the hospital chief executive officers are working hard with their staffs to prevent that from happening." Already, facilities such as Sunrise Hospital and Medical Center and St. Rose Dominican Hospital have already experienced small numbers of resignations, leaves of absence or early retirements in recent weeks from doctors who say they cannot afford to pay higher malpractice insurance premiums. The July 3 closing of University Medical Center's level one trauma unit has caused local victims of life-threatening injuries to be transported to the nearest hospital for treatment. However, some hospital officials admit they don't have the specialized staff or equipment needed to treat such patients, who normally would be taken to trauma centers.
UMS acquires lithotripsy business of Alliance Imaging
United Medical Systems Inc., a provider of urological, orthopedic shock wave therapy and stereotactic breast biopsy services at leading medical centers, has entered into an agreement to acquire the lithotripsy business of Los Angeles-based Alliance Imaging Inc., according to Jorgen Madsen, UMS president and CEO. The acquisition, expected to close this month as an all-cash-transaction amounting to approximately twice annual sales, represents another milestone in the expansion strategy of UMS, which has exclusive contracts with 400 medical and surgery centers in 25 states and Canada.
Surgery helps young athletes return to collision sports
High school football players who suffer dislocated shoulders might return to the field following arthroscopy surgery, according to a study by doctors at the department of orthopedic surgery's section of sports medicine at Rush-Presbyterian-St. Luke's Medical Center in Chicago. Of the 18 athletes in the study treated with arthroscopic stabilization for dislocated shoulders, all returned to their level of competition within 10 months of surgery and did not experience a decrease in range of motion. The researchers chose a high-risk group of young men with chronically dislocated shoulders for arthroscopic repair so that the results could be generalized to the orthopedic sports medicine community.
Finances, staff retention top hospital officials’ concerns
Financial burdens and staff retention are among the top concerns of hospital officials, according to a panel of hospital administrators and business leaders meeting in Orlando this week at the 35th Annual Conference of the American Society of Healthcare Food Service Administrators. Panel members cited the Health Insurance Portability and Accountability Act, as well as Medicare and Medicaid reimbursements, as two sources of financial pressure. They also discussed the difficulty in keeping food service personnel and concluded that hospital executives should focus on better treatment of employees.
MHA: Nursing shortage reaching ‘crisis proportions’
The shortage of nurses in certain departments is "moderate or severe," according to 60 percent of Massachusetts hospitals responding to a new survey by the Massachusetts Hospital Association and the Massachusetts Organization of Nurse Executives. According to the survey, nursing vacancy rates in Massachusetts have increased since 1996, and the current rates are the highest in almost 14 years. Overall vacancy rates for hospital RNs are 9.9 percent, while vacancy rates for certified nurse assistants are 13.6 percent in acute care hospitals and 8.2 percent in specialty hospitals. The MHA concluded that the shortage of hospital nurses "is reaching crisis proportions" and that all healthcare officials must work harder to increase the nursing workforce.
INDA offers conference schedule
INDA, Association of the Nonwoven Fabrics Industry recently updated its Conference Schedule. Following is a partial calendar of events.
Phantom sales scheme hits home care supplier
Rotech Healthcare Inc., a supplier of respiratory therapy, durable medical equipment and related services to the VA and other patients said it has uncovered evidence that an independent contractor defrauded the company by fabricating documentation for nonexistent sales of medical equipment in bulk to the Department of Veterans Affairs. The falsified sales were reflected as approximately $30 million in revenue, most of which was recorded in 2001. According to a Rotech press release, none of these purported sales to the VA were ever consummated. In addition, the company said it is reviewing approximately $6 million in unreserved receivables on VA non-bulk contracts.
Rotech, which is based in Orlando, FL, was quick to point out that while its investigation is not yet complete, it appears there was no fraudulent billing of the government in connection with these falsified sales. The company said the falsified sales of equipment in bulk are not related to Rotech's core business. VA sales of equipment in bulk accounted for approximately three percent of the Rotech’s 2001 revenues. VA revenues in total constituted approximately eight percent of Rotech’s 2001 revenues.
In response, the company has taken a range of steps including alerting government officials, terminating the independent contractor, hiring a law firm and a government contracts consulting firm, and working with KPMG to determine appropriate accounting treatment.
Shared Services inks pact with staffing concern
Atlanta-based Shared Services Healthcare announced it has signed a one-year agreement with CompHealth, Salt Lake City, UT, for staffing and credentialing services. Under the agreement, CompHealth will provide physician, allied health, nurse and executive staffing as well as credentialing services to SSH members.
Infectious disease expert named to head CDC
Dr. Julie L. Gerberding, an infectious disease expert known for her work against AIDS and anthrax, has been named the next director of the federal Centers for Disease Control and Prevention. Gerberding, a 46-year-old physician and research scientist, would become the first woman to lead the centers, the nation's top public health agency. Health and human services secretary Tommy Thompson is scheduled to announce Gerberding's appointment today at a ceremony at the agency's Atlanta headquarters. Gerberding, who moves up from her post as the CDC’s acting deputy director for science, helped lead the centers' efforts to investigate and contain the spread of deadly anthrax spores through the mail last year. The agency's previous director, Dr. Jeffrey Koplan, left the job on March 31 after defending CDC’s response to the anthrax wave, saying the agency performed well in the unprecedented situation of a bioterrorist attack.
Legionnaires' disease claims two lives in L.A. hospital
According to a report this week by the Los Angeles Times, nine people have become ill since January, including two who later died, with Legionnaires' disease acquired at 374-bed Good Samaritan Hospital in downtown Los Angeles. County health officials confirmed the deaths. It is not clear whether the patients' previous medical conditions contributed to their deaths. County health officials believe the patients became sick with the respiratory infection because of the hospital's water system, which contained the bacterium Legionella pneumophila. All of the sick had undergone cardiac procedures at the hospital that ranged from insertion of a temporary pacemaker to coronary artery bypass surgery. Hospital and county officials believe the outbreak has been contained, in part because of recommendations that all patients be served bottled water, instead of tap water. The hospital also has changed all showerheads and has performed a super-heated water flush of its plumbing system.
Premier, Amersham extend prostate brachytherapy seed deal
Premier Inc. has signed a sole-source agreement with Amersham Health, Princeton, NJ, that will provide Amersham’s prostate brachytherapy seed products, RAPID Strand, OncoSeed, EchoSeed, and TheraSeed for an additional two years. The agreement also includes commonly used prostate brachytherapy consumables such as the implant needles used for each procedure.
JPC and Source Atlantic sign capital management pact
New York-based Joint Purchasing Corp. and Source Atlantic, Rockland, MA, have reached agreement on a contract that offers a Web-based capital management platform known as Hourglass to participating JPC members. The Hourglass system allows users to aggregate their project capital needs with their year-to-year requirements to standardize and optimize the capital budget process. Source Atlantic also offers partnership services including assessment, inventory, forecasting, equipment planning, aggregation, procurement, and asset management. Terms of the deal were not disclosed.
Study: Worldwide nursing shortage has reached crisis proportions
In the first systematic study of the problems faced by nurses globally, researchers at Penn State University have found that the nursing shortage is a worldwide phenomenon that is both jeopardizing healthcare and creating stressful working conditions for nurses.
"Ninety of the 105 nurses' unions and organizations in our survey -- representing 69 nations and every geographic region -- reported their countries were experiencing a nursing shortage. This is bound to have a negative impact on the quality of patient care," says Dr. Paul F. Clark, professor of labor studies and industrial relations at the school. While noting that the exact cause of the nursing shortage varies from country to country, Clark attributes the shortage in the U.S. to the for-profit, bottom-line managed care system, which cuts costs by pruning the labor force, including nurses, and compelling the remaining staff to work longer hours under more trying conditions. "Staff reductions and mandatory overtime wreak havoc with the personal lives of nurses and exacerbates stress," he adds. Findings of the study were presented late last week at the International Industrial Relations Association Regional Congress of the Americas.
Broadlane, GHX to link exchanges
In the latest consolidation turn to come from the medical supply e-commerce segment, San Francisco-based Broadlane and Westminster, CO-based Global Health Exchange announced last week a three-year agreement to connect their respective Internet-based trading exchanges. Broadlane operates BroadLink, a private exchange consisting of more than 290 healthcare providers. GHX operates an open and neutral trading exchange with members across the supply chain, from manufacturers and distributors to group purchasing organizations, hospitals and integrated delivery networks.
Integrated GHX supplier members will begin conducting business with Broadlane customers during the second half of 2002. These suppliers will be able to conduct business with hundreds of Broadlane hospitals through a single point of connectivity with GHX. Integration with these GHX supplier customers is expected to increase BroadLink's transaction volume by approximately 20 percent and add $300 million annually in new supply spend moving through the Broadlane exchange.
Alliance gains additional reprocessing clearances
Phoenix-based Alliance Medical announced it has received four 510(k) clearances from the FDA. The approvals cover reprocessed external fixation devices manufactured by Synthes, Smith and Nephew Richards, EBI and Howmedica. Alliance has now received clearances on 19 of the initial 20 premarket notifications the company submitted to the FDA by the original August 2001 deadline.
Vanguard Medical acquires Utah medical device reprocessor
Vanguard Medical Concepts Inc., a medical device reprocessor based in Lakeland, FL, announced it has acquired the assets of Medical Instruments Technology Inc., a Utah-based medical device reprocessor. The acquisition adds cardiac retractors and stabilizers, trocars, curved arthroscopic shavers and coated orthopedic blades to Vanguard's reprocessing service portfolio.
Medtronic acquires spinal concern
Minneapolis-based Medtronic has announced a $269.5 million deal to buy Spinal Dynamics, Mercer Island, WA, a developer of replacement spinal discs. The two companies have worked together since February 2001, when Medtronic began distributing Spinal Dynamics' one product - the Bryan cervical-disc system - in Europe. Since that time it has maintained a 14 percent stake in the privately held company. Although about 800 patients in 17 countries use the devices, they are not available in the U.S. In May, Spinal Dynamics began human clinical tests required by the FDA, though clearances are not expected until sometime in 2005.