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March 2003
HealthSouth terminates Scrushy
Embattled rehabilitation and surgicenter operator HealthSouth Corporation announced today that its board of
directors had, by unanimous vote of the outside directors, declared its employment agreement with Richard M. Scrushy null and void and removed him from his positions as chairman of the board and chief executive officer. According to
HealthSouth, the board's action was effective as of March 19, 2003, the date on which the board placed Scrushy on administrative leave.
In addition, the HealthSouth audit committee has acted to replace Ernst & Young LLP as its independent auditors. The company says it expects to make the transition to a new independent auditor as soon as possible. As previously announced, the board has engaged the turnaround advisory firm of Alvarez & Marsal Inc., to manage all finance and administrative functions. Bryan P.
Marsal, a founding managing director of the firm, has been appointed chief restructuring officer of the company. Marsal and his team have begun work and are implementing measures aimed at stabilizing the company's operations, conserve its cash and reduce costs, including evaluating the sale of non-core assets, without disrupting patient care services.
CDC: Heart inflammation may be associated with smallpox vaccination
The Centers for Disease Control and Prevention is reporting that evidence suggests the smallpox vaccine may be playing a causal role in several cases of myopericarditis -- inflammation in or around the heart -- reported in vaccinated healthcare and military personnel. In today's Morbidity and Mortality Weekly Report, CDC is reporting that 10 cases of myopericarditis have been reported so far among vaccinated military personnel. Those cases are in addition to two civilian cases reported March 25, when CDC recommended that people who have been diagnosed with heart disease be temporarily deferred from receiving the smallpox vaccine while it investigates reports of heart problems in seven vaccinated healthcare workers. Three of the vaccinees experienced heart attacks, two of whom have died. In response, the state of Florida has halted its vaccination program pending further investigation.
Novation to tighten drug distribution rules
Irving, TX-based Novation, says it has put into effect initiatives in place to help address the integrity of the drug distribution supply chain by adding specific language to contracts that focuses directly on appropriate drug distribution to hospitals. A potential for tampering with drugs exists when the drug goes outside of the direct route of manufacturer to wholesaler to pharmacy. The more hands that drugs pass through on their way to the pharmacy, the more chances for tampering, counterfeiting and diversion. According to Novation, the intent of its new contract specifications with distributors is to assure hospitals that drugs are not adulterated or misbranded, which is best assured when wholesalers utilize a direct channel by purchasing directly from manufacturers and selling directly to pharmacies.
Premier, Medline extend would care pact
Premier, Inc. has expanded its agreement with Medline Industries Inc., Mundelein, IL, for specialty silver wound care products including Medline’s antimicrobial silver wound dressings called SilvaSorb. The contract takes effect immediately and runs through July 2005.
HealthSouth scandal claims CFO
Reeling from revelations of financial misdeeds, HealthSouth Corp. announced yesterday it had fired CFO William Owens, who the day before pleaded guilty to fraud charges in the case. Federal investigators believe that HealthSouth officials overstated the company's earnings by as much as $1.4 billion since 1999 under direct orders from CEO Richard Scrushy, who has been placed on administrative leave. Acting chairman Joel Gordon has replaced Scrushy.
In addition, the Birmingham, AL-based provider been declared in default on a $1.25 billion credit line by J.P. Morgan Chase & Co., an action that prohibits the company from making about $376 million in principal and interest payments on convertible bonds by an April 1 deadline. The bank froze HealthSouth's credit line last week after federal agencies accused the company and Scrushy of massive accounting fraud.
Blechschmidt named to Neoforma board
Edward A. Blechschmidt, retired chairman and chief executive officer of Gentiva Health Services, has been appointed to the board of directors of San Jose, CA-based e-commerce exchange Neoforma Inc. Blechschmidt, who the company says brings extensive healthcare, technology and financial experience to its board, will serve as a member of Neoforma’s audit committee. Blechschmidt served as chairman, CEO and president of Gentiva, a Fortune 1,000 provider of specialty pharmaceutical and home healthcare services, from March 2000 until July 2002. He also served as chief executive of Olsten Corporation, a $5 billion conglomerate, prior to the March 2000 spin off of Gentiva from Olsten. From 1996 to 1998, Blechschmidt was president and CEO of Siemens Nixdorf Americas and Siemens’ Pyramid Technology. Prior to joining Siemens, he spent more than 20 years with Unisys Corporation, a global provider of information technology and consulting services, where he held progressively responsible finance, administration and line positions including chief financial officer.
Abbott says infusion therapy line to be needleless in June
Abbott Laboratories, Abbott Park, IL, said that by June it will phase out all IV sets that contain or require needles, as part of the company's “continued commitment to improving patient and healthcare worker safety.” According to Abbott, by no longer manufacturing and marketing these products, the company expects millions of needles to be eliminated from the U.S. healthcare system, further protecting healthcare workers against needlestick injury and blood exposure. Abbott will use a needle-free technology across its entire line of infusion therapy products. According to the Centers for Disease Control and Prevention, between 600,000 and 800,000 needlestick accidents occur each year among healthcare workers.
Editor’s Note: Due to temporary loss in Internet access, the HPN Daily Update did not appear yesterday, Thursday, March 27. We apologize for the inconvenience.
Major product launches at AORN
Johnson & Johnson Wound Management yesterday announced the introduction of Actisorb Silver 220 antimicrobial binding dressing, a product the company calls the first and only primary wound dressing in the U.S. that combines broad-spectrum antimicrobial action, bacterial toxin management and odor control. The product was launched at the 50th annual Congress of the Association of periOperative Registered Nurses in Chicago.
Also at the AORN event yesterday, Cardinal Health, McGaw Park, IL, announced it has received clearance from the FDA to market a new fabric technology for surgical draping called Tiburon. The new Tiburon technology is a microfiber composite containing three fabric layers: an absorbent fluid-control layer, an impermeable membrane and a patient comfort layer. Tiburon will soon replace the Convertors' Optima spunlaced fabric line that the company had sold since 1985.
Premier inks spine pact
Premier Inc. announced it has awarded new spinal implant and related products contracts to Medtronic Sofamor Danek, Inc. and Interpore Cross International. The dual-source contracts took effect February 1 for Medtronic and March 1 for Interpore Cross International. Both agreements expire December 31, 2004.
NYSE halts HealthSouth trading
Days after allegations of gross overstatement of earnings came to light, the New York Stock Exchange announced it has suspended trading in its common stock, and will apply to the Securities and Exchange Commission to delist the security.
"Since last week, we have known that the NYSE was reviewing the suitability of a continued listing on the Exchange due to concern over the nature of the ongoing investigations and uncertainty surrounding the company's financial situation," stated Joel C. Gordon, interim board chairman of
HealthSouth, which is based in Birmingham, AL. "Knowing of this possibility, we have been evaluating efforts to secure an ongoing market for our stock. We understand that market makers have independently begun to make a market in the company's common stock on the OTC Pink Sheets under the symbol
'HLSH'."
"Operations at the company remain uninterrupted as we continue providing excellent patient care, and work with our independent experts to stabilize the situation and review all capital expenditures, and begin to move the company forward," said Robert P. May, HealthSouth’s interim CEO.
Premier, Medline in wound care pact
Premier Inc. has expanded an agreement with Medline Industries Inc., Mundelein, IL, that covers specialty silver wound care products to include Medline's antimicrobial silver wound dressings called SilvaSorb. The contract takes effect immediately and runs through July 2005.
HealthTrust signs wound care contract with Kendall
HealthTrust Purchasing Group, Brentwood, TN, says it has awarded part of a dual-source award for traditional wound care products to the Mansfield, MA-based Kendall business unit of Tyco Healthcare Group LP. The new contract, which took effect March 1, extends for four years into 2007. According to Kendall, the total value of the agreement is estimated to be in excess of $36 million.
UHC goes mobile with Stellcom pact
University HealthSystem Consortium, Oak Brook, IL, announced today that it has selected San Diego-based Stellcom as a preferred provider of mobile technology consulting services. Stellcom will support UHC members in managing technology, investment and implementation risk with respect to mobile computing and wireless technologies. UHC has collaborated previously with Stellcom, which sponsored a Mobility Assessment Forum in July 2002 for UHC members.
HealthSouth officials negotiating with feds; Scrushy spy plan revealed
Senior officials from the HealthSouth Corporation who may have been involved in the company's effort to disguise financial difficulties scrambled over the weekend to offer evidence and strike deals with federal prosecutors, people involved in the investigation said. The New York Times reports this morning that at least one official is said to be planning to submit documents, including copies of invoices and receipts, that would show how Richard M. Scrushy, HealthSouth's former chairman, oversaw the creation of a sophisticated electronic surveillance system that may have intimidated senior officials into keeping quiet.
Last week, the Justice Department filed a criminal complaint against Weston Smith, HealthSouth's former chief financial officer. Smith is cooperating with investigators in their effort to show how Scrushy pushed senior executives to inflate earnings to prevent a decline in HealthSouth's share price. The Securities and Exchange Commission is also investigating.
The Times reports that several members of a group of about a half-dozen high-ranking accounting and finance officials at the company have hired lawyers in recent days to advise them on negotiations with the prosecutors and investigators, the people involved in the investigation said. All of the executives were thought to have taken part in or had knowledge of so-called family meetings where records were forged to mislead auditors, according to the complaint.
The large number of employees with knowledge of an accounting scheme that reportedly went on for more than 15 years but accelerated in scope from 1999 to 2001 has prompted questions of how the practices were kept secret for so long. HealthSouth's executives and accountants privately urged Scrushy to stop inflating earnings but publicly refrained from revealing details of the company's inner workings, federal investigators said.
Lawson in pact with Maryland system
St. Paul, MN-based Lawson Software announced it has signed a multi-suite contract with Shore Health System, a two-hospital, 236-bed integrated delivery network based in Maryland's Mid-Shore area. The nonprofit system of hospitals licensed Lawson Series 8.0.3 Financials, Human Resources and Procurement, which will use the latest Lawson applications to automate its complex reporting needs and improve its financial controls and cost management. According to Lawson, the key benefits will include streamlined procurement processes, timely business intelligence for Shore Health's executive team and self-service benefits administration for employees and managers.
Bovie subsidiary Aaron Medical wins HIDA service award
Bovie Medical Corporation, Melville, NY, announced that its Florida-based Aaron Medical subsidiary was named the winner of the Manufacturer Excellence in Service Award (MESA) for the physician market, by the Health Industry Distributors Association (HIDA), at its annual executive conference, March 12-15 in Bonita Springs, FL. Created in 1995, MESA recognizes med-surg products manufacturers who support distributor efforts by providing the highest level of service in three selected markets: physician, hospital, and long term care. Past winners include: Johnson & Johnson, 3M Healthcare, Kimberly-Clark, Graham Medical, Midmark and Cypress Medical.
GHX signs first British-based supplier
The Global Healthcare Exchange announced that Actamed Ltd., West Yorkshire, England, has become the first United Kingdom-based national health system supplier to sign with the Westminster, CO-based electronic exchange. Terms were not disclosed. GHX has European operations that are headquartered in Brussels, Belgium.
Smith & Nephew and Centerpulse to merge
The boards of Smith & Nephew plc and Centerpulse AG announced that they have agreed to combine their businesses to create a global orthopedics company in a cash and stock deal. According to the companies, the deal will give the combined group the Number 3 global position (up from No. 7 and No. 8 for British-owned Smith & Nephew and Centerpulse respectively) in the $14 billion orthopedics market, one of the fastest growing medical technology sectors, which grew at an estimated 15 percent in 2002. The combined group will derive approximately 74 percent of sales from the orthopedics sector (joint implants, trauma, arthroscopy, spine and dental implants). In addition, the merger will position the combined group in reconstructive implants as the market leader in Europe with approximately a 26 percent market share. With 18 percent of the global reconstructive implant market, the combined group will hold the No. 3 position worldwide in hips and No. 4 in knees, according to a company release. In this country, Centerpulse Orthopedics is headquartered in Austin, TX, and was formerly known as Sulzer Orthopedics.
AmeriNet aglow after renewing radiology pact with NHD
St. Louis-based AmeriNet Inc. announced it has renewed for the next three years its agreement with NHD Inc. that covers the complete line of X-ray products and services offered by NHD through its 26 shareholder organizations. NHD, a network of regional, independently owned and operated distributors of medical imaging supplies, services and equipment says that collectively it distributes more than 30 percent of the film, chemistry, barium and related supplies sold in the U.S.
Spectrum Surgical in deal with scope repair concern
Spectrum Surgical Instruments, Stow, OH, says it has signed a strategic alliance with MedTech Surgical Products, Macedonia, OH, for the service and repair of flexible endoscopes. According to Spectrum, the alliance increases sales and service to endoscopy and surgery departments throughout Ohio, offering a simplified surgical equipment product that includes pickup, delivery, local technical support, educational services, customer training, and repair services.
Premier offers new Web-based safety resources
Healthcare industry workers sustain nearly five times more overexertion injuries than any other type of worker and are among six of the top 10 professions at greatest risk for back injury, according to the Department of Labor. To help hospitals reduce the effect of this prevalent occupational hazard, the Premier Safety Institute, a resource from Premier Inc., is offering a Web-based clearinghouse of tools, suggested policies, and information resources.
While back injuries are the most common cause of workforce absenteeism, such injuries among patient care personnel compounds today's critical U.S. nursing shortage and seriously diminishes the nation's ability to provide quality care. Such injuries also drain financial resources from the economy as well. Claims involving back strain may cost up to $85,000 if corrective surgery is required. Workers' compensation absorbs approximately $1.7 billion from the nearly 67,000 claims from healthcare workers suffering from back injuries. Since many of the back injuries result from improper patient lifting, risk managers, safety directors, and other healthcare administrators need assistance with assessing their facilities' risks and implementing policies and procedures to deal with the problem.
Developed and maintained by the Premier Safety Institute, the new Web site "module" will include a wealth of tools and resources, including action plans designed to identify potential solutions, determining equipment needs, cost issues, and training, Sample policies and procedures, training and education guidelines and tips, worksheets and calculators, equipment lists, including assessment protocols and patient lift and transfer resources.
Computer problems caused mislabeled drugs at Kaiser Northern California
On Thursday, March 13, Kaiser Permanente Northern California's pharmacy computer system experienced a power outage that may have resulted in labeling errors on some of the medications dispensed that day. According to Kaiser, almost all of the 4,700 patients issued prescriptions that day were reached through extensive efforts over the past several days. Kaiser Permanente says that it continues to contact the remaining patients through telephone calls, courier-delivered letters and in some cases, personal home visits. There have been no adverse patient reactions to date.
FDA clears Alliance Medical to reprocess new devices
Phoenix-based Alliance Medical received FDA clearance earlier this week to reprocess four additional medical devices. Alliance says it can now reprocess Orthofix external fixation devices (K023714), Aircast compression sleeves (K021654), KCI (includes PlexiPulse) compression sleeves (K024087) and Albahealth Pulstar compression sleeves (K024074).
These four new clearances bring the total number of cleared 510(k)s for Alliance Medical to 26.
HIMSS survey: Healthcare vendors say integration, error reduction, HIPAA compliance are clients' IT priorities
Healthcare vendors and consultants say that systems integration is a top information technology priority for their clients now and over the next two years, according to results of the 14th Annual Healthcare and Information Management Systems Society (HIMSS) Leadership Survey, sponsored by Superior Consultant Company, Inc. When asked what they believed to be the top IT priorities for their clients at this time, the four most frequently identified were integrating systems in a multi-vendor environment (53 percent), implementing technology to reduce medical errors/promote patient safety (46 percent), implementing privacy modifications to meet Healthcare Insurance Portability and Accountability Act (HIPAA) requirements (41 percent), and upgrading security on IT systems to meet HIPAA requirements (39 percent). With the exception of implementing privacy modifications to meet HIPAA requirements -a category added to this year's survey-these are the same top priorities cited by respondents in the 2002 survey.
HIGPA to host healthcare purchasing and supply summit
The Health Industry Group Purchasing Association
(HIGPA) announced it will host its second annual Global Summit on Health Care Purchasing and Supply in Amsterdam, The Netherlands from June 2-4, 2003. The three-day conference will offer domestic and international senior group purchasing organization and healthcare business executives, public sector policymakers and leading experts strategic level trans-border networking and learning opportunities. Summit faculty will engage the audience in discussion on timely topics, including breakthrough healthcare technologies, purchasing best practices,
bioterrorism, global partnership opportunities and e-business standardization.
For more information about the HIGPA Global Summit visit www.higpa.org or contact Kristine Bourque at 703-243-9262 or via email at
kbourque@higpa.org.
Study warns anthrax response plans inadequate
With war seemingly imminent comes a sobering warning that a little more than two pounds of anthrax spores spilled into the air over a city the size of New York could be expected to kill more than 120,000 people unless state and federal officials respond much more aggressively than they currently plan to. That’s the word from a new analysis reported yesterday in the Washington Post which marks the first comprehensive computer model of such a terrorist act. The analysis concludes that health officials should rethink the current plan to distribute antibiotics only after an attack. Tens of thousands of lives could be saved, the study predicts, if people could stockpile the drugs in their homes.
The report also is critical of the rush to deploy "biosensors" to detect an attack. Sensors are pricey and in most settings would save few lives compared with improvements in drug distribution for those exposed, the analysis found. Speed is crucial following an anthrax attack because, unlike smallpox, the disease progresses within just a few days to a stage that is nearly 100 percent fatal even with intensive care.
Although people with early symptoms can be saved, the hospital beds, ventilators and pulmonary specialists needed to save them are in relatively short supply. So, unlike the case in 2001, when every patient received intensive care, many of these patients would die. By contrast, everyone who takes appropriate antibiotics before symptoms arise can expect to survive.
"The person in charge, whether it's the president or whoever, needs to push the button really quickly," said Lawrence
Wein, the Stanford Business School professor who led the research, published in yesterday's online edition of the Proceedings of the National Academy of Sciences. "We can't sit around a day or two waiting for confirmatory reports that this is indeed anthrax. Every day that it takes you to get the antibiotics started, you lose another 10,000 people."
The Centers for Disease Control and Prevention has said it can fly anthrax medicines
(doxycycline or ciprofloxacin, brand name Cipro) to any U.S. city within seven hours. But getting it from the local airport to people's mouths can take days.
The model presumes a release of 2.2 pounds of anthrax bacteria -- a million billion spores -- 325 feet above a city of 10.8 million, with an additional 700,000 people in suburban areas. It predicts 1.5 million infections in an area 120 miles long and 11 miles wide. After 48 hours -- the time to become aware of the attack, mobilize the CDC's pharmaceutical stockpile, set up drug distribution centers and get the first pills into people's mouths -- 12,700 people would already be sick, with 17 at the incurable stage. Under current plans to serve 9,000 people at each neighborhood center, it would take four days to get the pills to everyone and 123,700 would die. Lines would be shorter under a policy that offered pills only to those with symptoms, but that would be a huge mistake, the model shows, resulting in a total of 600,000 deaths. Under a compromise policy in which only those exhibiting symptoms are treated until 7 percent of the population has symptoms, after which everyone gets treated, the final death toll would be about 250,000.
If people had the antibiotics at home and no one had to wait on line, the death count would be about 60,000, the model predicts.
MAGNET awards sole-source contract to E-Z-EM
The Mid-Atlantic Group Network of Shared Services Inc. (MAGNET), and E-Z-EM, Inc., Lake Success, NY, have agreed on terms of a contract that makes E-Z-EM a provider of virtual colonoscopy equipment and CT injector systems to participating MAGNET providers. Under terms of the agreement, E-Z-EM will be the sole provider to MAGNET members of innerviewGI virtual colonoscopy workstations, PROTOCO2L carbon dioxide insufflators, and EmpowerCT injector systems. The three-year agreement actually took effect last month but was announced yesterday.
Consorta, Sherwin Williams in paint pact
Rolling Meadows, IL-based Consorta, Inc. announced this week that it has awarded a three-year contract to Cleveland-based Sherwin Williams Company for its paint and paint related products. The new agreement, which takes effect April 1, covers a new category of products for Consorta members who may now obtain discounts on Sherwin Williams’ products sold in over 2,500 wholly owned, nationwide stores. It brings significant benefit because the contract covers a wide variety of the high quality products that Sherwin Williams is known for.
Tenet announces broad cost-cutting measures
Tenet Healthcare Corporation today announced several initiatives designed to sharpen its strategic focus, reduce operating expenses and accelerate its repurchase of shares. The initiatives include divesting or consolidating 14 hospitals with aggregate annual revenues of approximately $933 million that no longer fit Tenet's core operating strategy and reducing non-patient care expenses by at least $100 million annually as part of its program to improve operating efficiency and profit margins. Proceeds of the planned divestitures will be used primarily to accelerate its planned share repurchases. The Santa Barbara, CA-based hospital company also said it would treat stock options granted to employees as an expense in order to improve financial transparency. In addition, retroactive to Dec. 31, 2002, Tenet has changed from a non-standard fiscal year ending May 31 to a calendar year ending Dec. 31. This change will immediately align Tenet's financial reporting with its new Medicare outlier policy which took effect Jan. 1, 2003, while establishing comparable financial reporting with other major companies in the hospital industry and in corporate America.
The 14 hospitals to be divested, out of a chain of 114:
Plus, Tenet's management team expects the chain to save at least $100 million annually with the bulk of the savings coming from staff and expense reductions in corporate and hospital departments and areas not related to patient care, as well as leveraging Tenet's regional and corporate size and strength to gain significant cost savings and enhanced quality and service levels through a comprehensive nurse agency contracting program. Tenet spent approximately $350 million on contract labor, the majority of which was for contract nurses, in the 12 months ended Nov. 30, 2002, representing a 33 percent increase from the prior-year period.
Consorta signs temperature management products pact with Nellcor
Pleasanton, CA-based Nellcor, a business unit of Tyco Healthcare, said yesterday it has signed a new two-year agreement with Consorta Inc., Rolling Meadows, IL, that covers Nellcor's WarmTouch convective air warming systems and the company’s Mon-a-therm line of temperature monitors and probes. The agreement, which took effect March 1, expands Nellcor's longstanding relationship with Consorta and its members. Nellcor currently has contracts with Consorta for its pulse oximetry products and two of its key airway management product lines.
Flu bug toll rising
The number of people in Hong Kong infected with a severe and contagious strain of pneumonia has nearly doubled, officials said as airports and airlines from Italy to New Zealand put their staff on alert and ordered them not to check in passengers showing symptoms of the respiratory disease, which is believed to have killed nine people in Asia and Canada and infected more than 170 others. The illness is an atypical pneumonia that begins with high fever, chills, cough and breathing difficulty and can deteriorate rapidly into pneumonia. Some experts believe it is caused by a new virus. The World Health Organization issued a rare emergency travel advisory about Severe Acute Respiratory Syndrome, calling it a "global health threat." In this country, the CDC has alerted hospitals to the rapidly-spreading, deadly flu-like illness. More than 90 percent of the cases have occurred in healthcare workers, though so far no cases have been identified in the U.S.
Baxter subpoenaed
Baxter International Inc. has been subpoenaed by the Justice Department as part of a 17-month-old government investigation into the Deerfield, IL-based company’s involvement in the deaths of as many as 53 kidney dialysis patients in Texas, Nebraska and six foreign countries. The company said it has reached settlements with a number of the families of patients who died in Spain, Croatia and in this country after undergoing hemodialysis on the Baxter Althane series of dialyzers. But more lawsuits and claims could still be filed in the U.S. or elsewhere. Baxter said in December it would sell its renal services unit, which makes products to treat kidney disease such as the dialyzer machines. The division has had a history of other problems. In 2001, Baxter pulled some dialysis filters from the market and said a fluid used in their manufacturing may have contributed to some patient deaths. Last year, the company warned dialysis providers not to use certain blood tubing made by Medisystems Corp. in combination with Baxter's Meridian dialysis machine. The warning came after reports of five patient deaths and two injuries. Baxter also said in the filing it has been sued, along with several other pharmaceutical companies, over its pricing practices for the federal Medicare and Medicaid programs.
LeeSar System converts to Masimo pulse oximetry
LeeSar Healthcare System, a four-hospital system based in Fort Myers, FL, says it has standardized on Masimo SET pulse oximetry. According to Irving, CA-based Masimo, the system-wide conversion follows an evaluation of Masimo SET and other "next generation" pulse oximeters.
Hospital prices rose 0.5% in February
Overall hospital prices rose 0.5% in February, and were 4.5% higher than a year ago, according to the latest Bureau of Labor Statistics report. Prices at general med-surg hospitals also rose 0.5% and were 4.7% higher than a year ago, according to the BLS' Producer Price Indices, which measure average changes in selling prices received by domestic producers for their output. For hospitals, this translates into actual or expected reimbursement for a sample of treatments or services. The PPI for hospitals measure changes in actual or expected reimbursement received for services across the full range of payer types. This includes the negotiated contract rate from the payer plus any portion expected to be paid by the patient. For more information, see http://www.bls.gov/ppi.
Retired Houston hospital president hurt in car accident; wife killed
An automobile accident in Laurel, MS late last week seriously injured Dan Wilford, retired president and CEO of Houston-based Memorial Hermann Healthcare System. The accident claimed the life of his wife, Anne. Funeral arrangements are pending. Wilford, 62, was expected to be transferred to Memorial Hermann Southwest, Houston, from the intensive-care unit at Forrest General Hospital, Hattiesburg, MS. Wilford retired in November after 18 years as head of Memorial Hermann or its predecessors.
Premier says FDA bar coding proposals will improve patient safety
Premier Inc. said yesterday it supports rules proposed by the FDA that would require bar code labeling of all hospital-administered drugs and blood products. In a statement, the group says that such rules, aimed at creating a uniform, electronically readable identification standard for all pharmaceuticals down to the smallest unit dose, will foster significant improvements in patient safety, care quality, and efficiency in the supply chain.
The FDA's proposals, announced yesterday by HHS secretary Tommy G. Thompson, are the culmination of effort on the part of patient advocates, hospitals and other caregivers, drug manufacturers and distributors, and others. Executives representing Premier and numerous other stakeholders testified during the FDA's July 2002 public listening session which helped give policymakers a better understanding of the wide range of issues engendered by the issuance of a bar code regulation.
Both proposed rules, as well as other material related to the bar coding announcement, can be found on FDA's website at
http://www.fda.gov/oc/initiatives/barcode-sadr/.FDA invites written comments from the public on these proposed rules to the Dockets Management Branch (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Room 1061, Rockville, MD 20852.
Medicaid benefits slipping away
More than one million low-income Americans have lost or might lose Medicaid benefits as states try to contain rapidly escalating costs, according to a report this week from USA Today. The cuts and potential reductions represent about 2 percent of the 47 million Americans who receive Medicaid. California Gov. Gray Davis wants to cut 543,000 of the 6.5 million residents receiving Medicaid. Massachusetts is dropping 44,000 long-term unemployed adults. Michigan is cutting 52,000 Medicaid patients; Missouri, 20,000; Nebraska, 22,532; and Tennessee, 160,000. Medicaid makes up 20 percent of spending by state governments and is by far the fastest growing expense for most. States, which unlike the federal government cannot carry deficits, must cover $26 billion in budget shortfalls by June 30 and up to $68.5 billion the following year, the National Conference of State Legislatures says.
Hospital may have dipped into payroll to pay bills
Did Halstead Hospital, a 126-bed facility in Harvey County Kansas, dip into its payroll to pay its bills? That’s what investigators are looking into after the possibility was raised that the hospital may have been taking deductions from employees' paychecks but not using the money for health insurance, 401(k) plans and tax withholdings. Instead, the hospital allegedly used the money to pay the light bill, the phone bill, and other expenses. The dubious strategy did not work, since Halstead closed in January, then was sold for $560,000 to an alcohol and drug addiction treatment organization in a bankruptcy auction after filing for Chapter 11 bankruptcy protection last year. The Department of Labor has audited the hospital, and the Internal Revenue Service has been notified.
CEOs say hospitals ready for catastrophe
It may come as a bit of a surprise to some readers in hospitals this morning, but according to a new survey conducted by the American College of Healthcare Executives, 84 percent of hospital CEOs agree that since 9/11, their hospitals have worked more closely with public agencies (e.g., fire, police, and public health departments). Further, 95 percent of the respondents said their hospitals already have, or within six months will have, a bioterrorism disaster plan in place, developed in coordination with local emergency or health agencies. In the survey 85 percent of respondents reported that they already are working with other hospitals or hospital associations to learn about resources available for a response to bioterrorism. Of the hospitals not currently communicating with other organizations, 73 percent are planning to establish such relationships within the next six months. Sixty percent of the respondents confirmed that their hospitals have decontamination units in place. Of the hospitals without decontamination units, 70 percent plan to purchase them within the next year. The survey also asked CEOs to rate their hospitals' current readiness in comparison to before 9/11. As a result of initiatives taken since 9/11, 69 percent of the CEOs believe their hospitals have become safer places.
MedAssets formalizes Standards of Business Conduct
Atlanta-based MedAssets, the parent company of St. Louis-based MedAssets
HCSA, the nation's third largest group purchasing organization, yesterday introduced its Standards of Business Conduct to the healthcare industry. John
Bardis, CEO and chairman of MedAssets, called the Standards of Business Conduct a formal articulation of much of
MedAssets' current policies and procedures rather than a fundamental philosophical or business practice change.
The complete MedAssets Standards of Business Conduct is posted on
MedAssets' website at
www.medassets.com.
Eyeing HIPAA compliance, Consorta guides members toward secure supplier agreements
To help its members achieve the April 14 deadline for compliance with patient information privacy standards under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), Rolling Meadows, IL-based GPO Consorta says it has secured written agreements to protect the use and disclosure of protected health information any contracted supplier may have access to while conducting business within a Consorta member facility. Beginning in April, Consorta will post a list of suppliers whose contracts do not include the HIPAA compliance language on WINGS, the group’s proprietary contracting information and resource management website. Consorta’s privacy standard compliance language is automatically included in all new Consorta contracts and contract extensions.
Guidant to buy Israeli cardiac device maker
Medical device maker Guidant Corp. yesterday said it agreed to buy X Technologies Inc., Tustin, CA, and Yavne, Israel, a privately held company that has developed a device used to help clear stents that clog after being placed into coronary arteries. X Technologies makes FX miniRAIL -- a device already approved in Europe and other parts of the world and now awaiting approval from the FDA that features two metal wires located outside angioplasty balloons which are threaded through clogged arteries in order to restore blood flow. Angioplasty procedures are typically performed as preparation for implanting stents into arteries and to help clear re-clogged arteries. In early January, Indianapolis-based Guidant abandoned its plans to acquire Cook Group Inc. after a clinical trial failed to show Cook's drug-coated stent was significantly more effective in preventing re-clogging than Guidant's own product.
Carondelet Health, ex-Premier system, joins Consorta
Consorta Inc. announced that the Carondelet Health System will join the Rolling Meadows, IL-based group purchasing organization and move away from its previous relationship with Premier Inc. Carondelet represents 11 hospitals in Arizona, Georgia, Idaho, New York and Washington under the leadership of St. Louis-based Ascension Health. In early December, Ascension announced the addition of the Carondelet Health System sponsored hospitals and other healthcare facilities to their ministry. Ascension is the nation’s largest non-profit healthcare system and a founding shareholder of
Consorta.
In 2002, after considering a possible move to self-contracting, Ascension Health a new three-year group purchasing contract with
Consorta. Under that agreement, all Ascension Health facilities can take advantage of Consorta’s group purchasing agreements for supplies, pharmaceuticals, equipment and services and will have access to Consorta’s consultation, education programs and other support services. The agreement also calls for specified new group purchasing agreements to be developed for Ascension Health’s exclusive use.
CHCA renews online purchasing pact with Tri-anim
The Child Health Corporation of America, the Overland Park, KS-based GPO representing children’s hospitals, says it has renewed an agreement with Tri-anim, Sylmar, CA, under which CHCA hospitals will transition conventional purchases to Tri-anim’s e-Quick System. The e-Quick System is Tri-anim’s Internet-based procurement solution designed to simplify the process of researching, ordering and tracking the usage of products provided by Tri-anim. One CHCA purchasing official said the group’s hospitals were able to document more than $500,000 in savings during the first year of its previous preferred supplier agreement with Tri-anim.
JPC, Konica expand earlier agreement
New York-based GPO Joint Purchasing Corporation announced it is expanding a contract with Konica Medical Imaging to add Konica's new DryPro 751/752 dry laser imager and Xpress CR system to the group’s diagnostic imaging portfolio.
Spectrum Surgical names general manager
Spectrum Surgical Instruments Corp. announced it has promoted Alex Vrancich to the position of general manager. Vrancich, who has been with Spectrum for the past eight years, had previously served as operations manager for the Stow, OH-based supplier of surgical instruments and surgical instrument repair services.
Hospital employment again rises slightly
Employment at the nation's hospitals rose a seasonally adjusted 0.16% in February, the same increase seen in January, according to a Bureau of Labor Statistics report. Hospitals employed a seasonally adjusted 4,283,000 people in February, BLS reported. That figure comes out to 7,000 more than in January and 99,000 (2.4%) more than in February 2002. Those numbers without seasonal adjustment show hospitals employed 4,277,200 in February, 98,500 more people than in February 2002. In contrast, the nation's overall employment rate climbed one-tenth of a percentage point in February to 5.8%.
Cook signs HealthTrust product pact
Bloomington, IN-based Cook Incorporated says it has signed a two-year contract with HealthTrust Purchasing Group, Brentwood, TN, to provide a broad range of medical devices from Cook's diagnostic and interventional products division to HPG member clinics and hospitals. The new agreement covers a variety of Cook's most popular wire guides, balloon and diagnostic catheters, drainage sets, embolization coils, vascular stents, and sheaths and dilators.
Novation, Medline sign deal
Irving, TX-based Novation and Medline Industries, Mundelein, IL, have reached agreement on a contract that covers Medline’s Konig Surgical Instrument line. The three-year, multi-vendor agreement is worth up to $60 million over the term of the agreement. The agreement calls for Medline to provide its Konig line of German-made surgical instruments, including general and specialty instruments and laparoscopic instruments. As part of the agreement, Medline will also offer a complete range of instrument repair services, including a 10 percent cost saving guarantee. Medline will also guarantee availability of more than 2,100 of the most highly utilized instruments. As part of the arrangement, Medline guarantees that if an item is not shipped within three business days, participating Novation members will receive a 50 percent discount on that item.
AAOS in alliance with OSHA
With a stated focus of reducing ergonomic injuries in the workplace, the American Academy of Orthopaedic Surgeons announced today it has formed an alliance with the Occupational Safety and Health Administration. AAOS is the first medical association to partner with OSHA. By joining together, both organizations plan to use their collective expertise in order to help reduce and prevent ergonomic injuries in the workplace.
"Perhaps no one is more attuned to the debilitating effects ergonomic-related injuries have on workers than the healthcare professionals represented by AAOS," said OSHA administrator John L. Henshaw. "They've committed to sharing with us the orthopaedic community's vast clinical expertise on musculoskeletal injury and disease. We welcome this valuable relationship."
The alliance specifies that OSHA and the 26,000-member AAOS will serve as resources to both AAOS members and OSHA personnel to help them protect workers' health and safety, particularly in reducing and preventing ergonomic hazards. Both organizations plan on seeking opportunities to jointly develop information at conferences, events, and through media outlets, including their individual websites. Additionally, OSHA and AAOS will provide speakers and exhibits for conferences and other events to promote OSHA's comprehensive four-pronged approach to address ergonomic issues. OSHA has agreed to educate its personnel on current research initiatives and workplace hazard identification, with the help of AAOS resources. Likewise, the Academy will work with OSHA as it develops a clearinghouse of training and education information on ergonomic issues.
CA bill would reveal supply costs to patients
California hospitals would have to tell patients the price of everything from aspirin to X-rays under a package of bills unveiled in the wake of several state and federal probes of hospital costs, the Sacramento Bee reports. At a time when hospital expenses are the biggest driver behind rising health insurance premiums, one chain, Tenet Healthcare Corp., has become a touchstone in the state capitol as legislators search for ways to control healthcare costs. In recent months, Tenet has been accused of "price gouging" at the expense of patients, state insurance programs and taxpayers. Now, legislative efforts to curb what patients and health plans spend at Tenet may lead to broad reforms of hospital billing in the state and greater disclosure of the cost and quality of care. One bill would require hospitals to make public their "chargemasters," essentially lists of sticker prices for medical procedures. Another piece of legislation aims to protect patients from being stuck with bills during a payment dispute between a hospital and a health plan. The bill would allow hospitals to charge a patient no more than the co-payment laid out in that patient's HMO contract.
Citing state’s liability crisis, ACOG won't meet in Philadelphia
The American College of Obstetricians and Gynecologists has decided not to conduct its 2009 annual meeting in Philadelphia because of what it calls the "current professional liability crisis" and the "effect it is having on women" and their physicians in the state. Last year, ACOG sent a letter to Pennsylvania's governor expressing concern about the crisis. Now, ACOG says, the situation isn't much better, and the 11,000-member group says it will not sign a contract to bring its members to a city where obstetricians and gynecologists are having to retire early, cut high-risk procedures and move out of state because they can't afford insurance premiums.
Pennsylvania did pass some tort reform measures last year. New laws allow malpractice damages to be paid over time, set higher standards for expert witnesses, establish a patient safety authority and phase out the Medical Professional Liability Catastrophe Loss Fund, a jury award pool into which physicians must pay. It also established a seven-year statute of limitations on filing a lawsuit unless the case involves a minor, or a foreign object left in a body.
But reforms haven't included an item that physicians have argued is a necessary step toward containing costs: a $250,000 cap on non-economic damages -- commonly known as pain and suffering damages -- that are awarded in medical malpractice cases. In Pennsylvania, that would have to come through a constitutional amendment.
In 2001, 25% of Pennsylvania ob-gyns said they planned to stop practicing obstetrics. Half said they planned to stop gynecologic surgery.
Angelica completes plant swap
St. Louis-based textile rental and linen management services provider Angelica Corporation says that its Angelica Textile Services segment has completed an exchange of its plant and operations in Philadelphia for a plant and operations of Tartan Textile Services Inc., located in Vallejo, CA. Terms of the transaction were not disclosed.
WVA hospital moves GPO business to MedAssets HSCA
The Charleston (WVA) Area Medical Center Inc. says it has selected St. Louis-based MedAssets HSCA, as its primary group purchasing organization for consumable supplies. The 887-bed teaching facility, which has been affiliated with Irving, TX-based Novation, signed a five-year, non-exclusive agreement with MedAssets HSCA that takes effect May 1. The hospital spends about $70 million each year purchasing basic hospital supplies and commodities through group purchasing organizations to supply its three Charleston campuses. The medical center is a founding shareholder of VHA, and will remain a VHA member despite its change in GPO affiliation.
Intuitive Surgical and Computer Motion to merge
Intuitive Surgical and Computer Motion today announced they are merging into one company that combines their strengths in operative surgical robotics, telesurgery and operating room integration. Under the terms of the definitive merger agreement, Santa Barbara, CA-based Computer Motion's equity holders would receive 32 percent of the combined company and Sunnyvale, CA-based Intuitive's equity holders would receive 68 percent.
The merger will also end a series of long-term patent disputes, eliminating intellectual property litigation and initiating technology sharing.
Intuitive's da Vinci Surgical System is used by surgeons in more than 100 hospitals around the world and provides all the advantages of open surgery while simultaneously allowing the surgeon to work through small ports of minimally invasive surgery. Intuitive shipped 60 da Vinci Surgical Systems in 2002 and had total sales of $72 million. Computer Motion is a high-tech medical device company evolving surgical practices to enhance patient lives. Its products include the Zeus MicroWrist Robotic Surgical System for minimally invasive surgical procedures, and the Hermes Control Center, a centralized system that enables the surgeon to voice control a network of "smart" medical devices. The Aesop Robotic Endoscope Positioner is the first surgical robot to be made commercially available in the U.S. The company's newest product, the Socrates Telecollaboration System, facilitates surgeon collaboration using video and audio conferencing, shared control of the endoscopic camera, and video annotation on the surgical image in the operating room.
Compensation fund proposed for smallpox injuries
After months of delay, the Bush administration is proposing a compensation fund for people injured by the smallpox vaccine, trying to plug the most prominent hole in its inoculation program. According to the Associated Press, the proposal, which Congress would have to approve, is based on a similar compensation package now available to police officers and firefighters injured on the job. Under the plan, the government would pay $262,100 for each person who dies or is permanently and totally disabled by the vaccine. Those less severely injured could receive up to $50,000 plus medical expenses. The plan announced Wednesday by the Health and Human Services Department would compensate people who are being asked to participate in the vaccination program -- as many as 10.5 million healthcare workers and emergency responders. The fund also would cover people injured because they came into contact with a vaccinated worker.
VHA tabs Nonomaque as next chief executive
Irving, TX-based VHA Inc. announced that Curt Nonomaque, the group’s executive vice president, will take over as president and CEO May 1. Nonomaque, 45, will succeed Tom Smith, who is retiring after 12 years with the cooperative. Nonomaque will be the first non-hospital executive in VHA's 26-year history to lead the company on a permanent basis. Nonomaque joined VHA in 1986 as a financial analyst and was named executive vice president in 1996. He played key roles in the development of numerous initiatives, including the growth of Novation and its e-commerce partner, Neoforma. After a nationwide search, Nonomaque was selected from a field of 20 potential candidates.
Consorta energized after signing pact with Johnson Controls
Rolling Meadows, IL-based Consorta Inc. today announced an agreement with Johnson Controls Inc. that covers energy management products and services. The new agreement took effect March 1. Milwaukee-based Johnson Controls offers a full range of energy management services for healthcare facilities.
WI hospital expands lab pact with Misys
Tucson, AZ-based Misys Healthcare Systems says it has signed an agreement to expand its existing relationship with 547-bed St. Vincent Hospital, Green Bay, WI. St. Vincent expects to increase its service level and client base while reducing overall costs with the addition of the Misys laboratory multi-facility software and several new interfaces.
Thanks
A word of thanks to everyone who asked to be considered for the panel discussion scheduled to take place in May at the American Academy of Critical-Care Nurses meeting in San Antonio. The response was overwhelming, and we have selected a panelist from the many candidates we received. Keep in mind that the AACN show will be held May 17-22 and materials managers are welcome. See aacn.org for more details.
Two GPO execs join HIGPA board
The Health Industry Group Purchasing Association announced that two new group purchasing organization executives—Jeffrey W Maysent, general counsel for Premier, and Andrew Janover, senior vice president of operations for the Joint Purchasing Corp.—have been appointed to HIGPA’s board of directors. Both Maysent and Janover are filling positions left vacant after recent resignations. Maysent’s appointment to the HIGPA board was due to Howard Sanders recent resignation as Premier’s senior vice president of contracting services. Janover was appointed to the HIGPA board following Ralph Dean’s departure from JPC last month. Both board positions were company-specific, meaning that Premier and JPC appointed a new representative to the HIGPA Board.
Medline, DuPont sew up surgical apparel pact
Mundelein, IL-based Medline Industries Inc. and DuPont Medical Fabrics announced they have signed a new marketing relationship in which DuPont will provide advanced medical fabrics for Medline's Proxima line of disposable protective surgical apparel and protective products.
Ohio IDN in maintenance deal
The West Central Ohio Regional Healthcare Alliance, a network of rural hospitals headquartered in Lima, OH, announced it has signed an agreement with USCS Equipment Technology Solutions, Brookfield, WI, which covers the repair of facility equipment through USCS’ Lifecycle Managed Maintenance Program. Facilities included in the three-year agreement include St. Rita’s Medical Center, Mercer County Joint Township Hospital and Van Wert County Hospital.
HIDA, AHRMM and HIGPA release disaster supply formulary
Three major trade groups representing materials management and the supply chain today released the results of a landmark, cooperative project on healthcare supply formulary for disaster readiness. The Health Industry Distributors Association (HIDA), the Association for Healthcare Resource & Materials Management (AHRMM), and the Health Industry Group Purchasing Association (HIGPA) created healthcare med-surg supply formularies in response to the ongoing issue of readiness for large-scale chemical, biological, radiological, nuclear and explosive or natural disaster events.
The supply formularies are based on information from multiple hospitals and healthcare systems. Intended as benchmarks for supply preparedness, the formularies can be customized to fit the needs of each hospital and community by working with internal staff and suppliers.
"This tool can be used by all distributors to plan for emergencies and to work with their customers for the purpose of serving their supply needs," says Matt Rowan, HIDA CEO and president. "These formularies were developed through true collaboration within the medical supply chain, and they will enable hospitals, purchasers, and distributors to deliver the best quality care and supplies for the treatment of patients."
"Healthcare institutions face the challenge of having enough critical supplies, balanced with keeping supplies fresh, working with suppliers to obtain the necessary items on an as needed basis, and having the right supplies on-hand for each specific type of CBRNE," explained Al Cook of AHRMM, who serves as co-chair of the Disaster Readiness Task Force. "This formulary shows the real value of working together in supply chain management in a voluntary, collaborative effort."
"The unique position of group purchasing organizations allows them to communicate directly with hospitals and other health care providers to facilitate the planning and coordination of supplies in the event of a 'large scale' public health tragedy," said HIGPA president and CEO Robert Betz, Ph.D.
Brits lower mad cow estimates
Scientists have dramatically lowered their estimates of how many people are likely to die from the human form of mad cow disease, though experts say much uncertainty remains. Part of the reason the estimate has dropped is because early predictions of worse case scenarios did not materialize, forcing a shift in calculations. Experts previously estimated that anywhere between a few hundred to 100,000 people in Britain could eventually contract the fatal brain-wasting illness, variant Creutzfeldt-Jakob disease. Now, new research published by the Royal Society, Britain's academy of scientists, forecasts that as few as 10 additional people and as many as 7,000 could get the illness by 2080. Variant CJD has killed 132 people so far -- 122 of them in Britain.
Tri-anim fired up over new deal
Tri-anim Health Services, Sylmar, CA, says it has signed an agreement that makes it the primary supplier of EMS products for members of The FIRE-GPO, Salem, OR, the group purchasing organization of the Western Fire Chiefs’ Association.
Report: Mid-2002 hospital operating margins in hit highest levels in five years
Despite concerns over the threat of bioterrorism and the lagging economy, as well as increasing labor and drug costs, U.S. hospitals managed to post the highest operating margin average in five years -- 6.28 percent -- in the second quarter of 2002. That key finding comes from a new Solucient report released today, The Health of Our Nation's Hospitals: A Report on Hospital Operating Margins 1997-Mid-Year 2002. The report provides a first look into hospital operating margin averages through June 30, 2002. Operating margins, calculated as the difference between total operating revenues and total operating expenses divided by total revenue, have long been considered an essential measure of the U.S. healthcare system's financial strength.
The average operating margin in second quarter 2002 represented an increase of nearly a full percentage point over first quarter 2002 (5.4 percent) -- the first such increase observed in the past five years. Typically, hospital operating margins peak in the first quarter and then drop -- sometimes significantly -- by the second quarter. The average operating margin for the first two quarters of 2002 was 5.83 percent. The report also revealed that hospitals with fewer than 150 beds had higher operating margins than larger facilities, and that the average median daily census - the number of occupied beds in a hospital at midnight census - grew 25 percent over 1997 levels. For a copy of the report, visit the publications section of the Solucient website at
www.solucient.com.
CDC looking into smallpox reactions
Federal health officials are investigating medical problems in three healthcare workers who became ill after receiving the smallpox vaccine, though only one appears to have had a reaction to the inoculation. It is the first report of injuries associated with the month-old civilian vaccination program, according to a report today from MSNBC. The three people live in Florida and are reportedly doing well. The first case reported Thursday involves a 39-year-old nurse who appears to have a rash called generalized vaccinia. The smallpox vaccine is made with a live virus called vaccinia, which can escape the inoculation site and cause infection. Generalized vaccinia can occur if someone touches the spot of the vaccination and then another part of the body. The nurse in this case reported pain, malaise and headache nine days after receiving the vaccine. The next day, she developed a rash on her chest that spread onto her back and included scattered pustules, which are typical of generalized vaccinia. She was treated with antihistamines and within a few days, the rash began fading. It was not expected to leave permanent scars. Testing was under way to confirm if she did indeed have generalized vaccinia.
The second case involves a 60-year-old man who already had symptoms of heart disease before being inoculated. He had chest pains while playing tennis four days after getting the vaccine, was diagnosed with a blocked coronary artery and had angioplasty. The smallpox vaccine has never been associated with heart problems such as angina. The third case, reported by Florida authorities but not by the Centers for Disease Control and Prevention, involves a vaccine recipient whose gallbladder was removed because of an acute inflammation. Gallbladder problems also are not associated with the vaccine.
As of last week, 7,354 health workers had been vaccinated in 38 states and Los Angeles and New York, which are running separate programs. In addition, the military is in the process of vaccinating thousands of troops. Based on data collected in the 1960s, before routine smallpox vaccinations ended in the United States, as many as 50 people out of every 1 million being vaccinated for the first time suffer life-threatening complications, and one or two die.
Neoforma launches new solution set
San Jose, CA-based Neoforma Inc. says it has launched what it calls “an enhanced set of Web-based solutions for hospitals and suppliers designed to mirror their complex day-to-day business processes.” The new offering, which is aimed at tackling supply chain problems, is designed to allow hospitals to increase control, improve communication and strategic planning and gain organization-wide visibility into supply chain activities with increasing ease. According to
Neoforma, the enhanced offering is the result of experience with and feedback from current and prospective customers. The first customers to benefit from using
Neoforma's enhancements are member hospitals of VHA Inc. and the University HealthSystem Consortium and their suppliers through Novation's e-commerce solution
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