Novation is the healthcare industry's largest group purchasing organization. Using its supply chain analytics and contracting expertise, Novation negotiates purchases and contract pricing for a number of healthcare organizations.
Hospitals serviced by Novation can access pre-negotiated terms and conditions as well as the best market prices for supplies throughout the life of their agreements with Novation. Healthcare organizations serviced by Novation include Provista, UHC, VHA and the Children's Hospital Association.
Philips Healthcare has just become Novation's preferred service provider for clinical equipment maintenance. This status will provide Philips with access to a purchasing network of over 64,000 affiliates, including 2,800 hospitals.
In 2012, the power of Novation created $43 billion in member contracts for its portfolio of over 600 suppliers. Achieving preferred service provider status could mean a major cash influx for Philips Healthcare.
"Through a very competitive review, we are extremely pleased that Philips Multi-Vendor Services was selected as the only OEM to provide quality service for imaging equipment to the hospitals served by Novation, providing them with trusted service resources that allow them to focus their energies on providing high quality patient care," stated Tom Kirkland, senior VP of Customer Services Americas with Philips Healthcare.
As a preferred service provider, Philips also becomes the only OEM vendor for servicing and maintaining imaging equipment in the Novation network.
Novation and Philips have had a cozy relationship for several years. In 2011, Philips was crowned as one of Novation's Overall Suppliers of the Year. The award cited Philips for its commitment to placing hospitals and patients first and for its superior overall service.
Currently, Philips Healthcare provides maintenance and support for biomedical equipment and imaging systems used by a wide range of healthcare providers. In fact, Philips services over 6,500 non-Philips imaging devices and over 130,000 biomedical devices in North America alone.
"We’re excited that Novation has selected our Multi-Vendor Service solutions for their extensive membership and appreciate the confidence they have in our proven strength in MV," Kirkland concluded.
Edited by
Alisen Downey
