19 Healthcare Organizations Choose Neoforma; New Users Represent More Than $700 Million in Annual Medical Procurement.Business Editors/Health & Medical Writers SAN JOSE, Calif. & IRVING, Texas--(BW HealthWire)--July 20, 2000 Neoforma.com, Inc. (Nasdaq:NEOF NEOF No Evidence of Failure NEOF National Emergency Operations Facilities NEOF Naval Explosive Ordnance Facility ) and Novation The substitution of a new contract for an old one. The new agreement extinguishes the rights and obligations that were in effect under the old agreement. A novation ordinarily arises when a new individual assumes an obligation to pay that was incurred by the original party , LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control today announced that 19 healthcare facilities have signed contracts to use the Marketplace@Novation, powered by Neoforma, as their healthcare purchasing solution. The 19 facilities represent more than $700 million in annual medical procurement and have committed a minimum of 50% of their total procurement to the marketplace. In less than one month, Neoforma and Novation have signed contracts with 13 members of VHA VHA Veterans Health Administration VHA Variable Housing Allowance VHA Villages Homeowners Association VHA Voluntary Hospitals Association VHA Virtual Home Agent VHA Very High Altitude VHA Vapor Hazard Area VHA Vermont Holstein-Friesian Association , Inc. and 6 members of University HealthSystems Consortium (UHC UHC UnitedHealthcare UHC United Health Care UHC University Hospitals of Cleveland UHC United Hitech Corporation UHC Udvar-Hazy Center (National Air and Space Museum) UHC University Health/System Consortium UHC Unburned Hydrocarbons ) to purchase through the Marketplace@Novation. Novation, the largest group purchasing organization A group purchasing organization is an entity that leverages the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members. Many GPOs are funded by administrative fees that are actually paid by the vendors. (GPO) in the United States, is the supply chain management company of VHA and UHC. In May 2000, Neoforma signed an exclusive 10-year amended agreement to provide e-commerce procurement solutions for Novation. In conjunction with this agreement, the two companies established the Marketplace@Novation. Neoforma's Services Delivery Group will begin rapidly integrating these facilities' existing information systems into the new Marketplace@Novation. Upon completion of this integration, these facilities will be able to utilize the Marketplace@Novation's contracting, procurement and supply chain solutions while using existing technology and preserving established trading relationships. "These innovative healthcare facilities are on the forefront of technology in their industry. They are determined to reduce the complexity and costly inefficiencies existing in their supply chain, and they recognize the value of the broad range of Neoforma solutions developed to retool healthcare commerce," commented Bob Zollars, chairman, president and chief executive officer of Neoforma. "We are very excited to help these first-movers increase their productivity and cost savings." The following healthcare organizations have signed multi-year contracts to procure through the Marketplace@Novation, powered by Neoforma: -- Bloomington Hospital, Bloomington, IN (VHA) -- California Pacific Medical Center California Pacific Medical Center (CPMC) is one of the largest private, not-for-profit, academic medical centers in Northern California. The Medical Center is a combination of three of San Francisco's oldest medical institutions: Pacific Presbyterian Hospital, Children's Hospital -- Pacific Campus, San Francisco, CA (VHA) -- California Pacific Medical Center -- California Campus, San Francisco, CA (VHA) -- California Pacific Medical Center -- Davies Campus , San Francisco, CA (VHA) -- Evanston Northwestern Hospital, Evanston, IL (VHA) -- Exempla ex·em·pla n. Plural of exemplum. St. Joseph's Hospital St. Joseph's Hospital may refer to: In the United States:
-- Exempla Lutheran Medical Center Exempla Lutheran Medical Center is a hospital in Wheat Ridge, Colorado. History In 1905, the Evangelical Lutheran Sanitarium, a tent colony for tuberculosis patients, opened in Wheat Ridge, a few miles west of Denver's city limits. , Denver, CO (VHA) -- Freeman Hospital -- East, Joplin, MO (VHA) -- Freeman Hospital -- West, Joplin, MO (VHA) -- Freeman Hospital -- Neosho, Joplin, MO (VHA) -- Glenbrook Hospital, Glenbrook IL (VHA) -- Highland Park Hospital, Highland Park, IL (VHA) -- Medical College of Virginia History The school was founded in 1838 as the Medical Department of Hampden-Sydney College. It received an independent charter from the General Assembly in 1854 and became the Medical College of Virginia, and shortly thereafter transferred all its property to the Commonwealth , Richmond, VA (UHC) -- Memorial Hospital, Belleville, IL (VHA) -- University of California The University of California has a combined student body of more than 191,000 students, over 1,340,000 living alumni, and a combined systemwide and campus endowment of just over $7.3 billion (8th largest in the United States). Irvine Medical Center, Orange, CA (UHC) -- University of California San Diego Medical Center -- Hillcrest, San Diego, CA (UHC) -- University of San Diego Medical Center, La Jolla -- Thornton Hospital, La Jolla, CA (UHC) -- University of Utah The University of Utah (also The U or the U of U or the UU), located in Salt Lake City, is the flagship public research university in the state of Utah, and one of 10 institutions that make up the Utah System of Higher Education. Hospitals & Clinics, Salt Lake City, UT (UHC) -- University Neuropsychiatric neu·ro·psy·chi·a·try n. The medical study of disorders with both neurological and psychiatric features. neu Institute, Salt Lake City, UT (UHC) "We've been using Neoforma's auction services for some time and we've been very impressed by their management team and the level of service we've received. Neoforma's integrated technology can support all of our procurement needs, from purchasing to reporting," commented Jeff Hillebrand, chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Evanston Northwestern Healthcare Evanston Northwestern Healthcare, located in Chicago's northern suburbs, is an academic health system affiliated with the McGaw Medical Center of Northwestern University and all attending physicians are on faculty at the Feinberg School of Medicine. , one of the first systems that will purchase through the Marketplace@Novation, powered by Neoforma. "We believe that Neoforma`s leading technology solution truly addresses the inefficiencies in the healthcare supply chain and we want to address those internally as quickly as possible. We are confident that the strong implementation team at Neoforma can deliver the results we need quickly and efficiently." "We believe that Neoforma's technology solutions are the way of the future and we are pleased to be one of the first healthcare organizations to implement this powerful new procurement tool," said Terry Turner, director of materials management at the University of Utah Hospitals and Clinics, one of the first facilities to be integrated into the Marketplace@Novation. "With our contract and pricing information updated in real time and access to global purchasing information and trends, we believe that Neoforma will make a significant difference in the levels of efficiency in our supply chain." About Neoforma.com, Inc. Neoforma is a leading provider of business-to-business e-commerce solutions to the global medical marketplace. Focused on transforming the inefficient and highly fragmented healthcare supply chain, the company provides an open, online marketplace that enables buyers to lower product-procurement costs, while giving suppliers a new, highly efficient direct marketing channel. Neoforma's comprehensive e-commerce solutions are focused on improving healthcare purchasing needs, from planning to procurement to liquidation. For more information, visit the company's Web site at www.neoforma.com. About Novation Novation, the supply company of VHA and UHC, two national healthcare alliances, is based in Irving, TX. Novation serves the purchasing needs of 6,500 healthcare organizations nationwide, the members and affiliates of VHA, UHC and HealthCare Purchasing Partners Intl., LLC (HPPI HPPI - High Performance Parallel Interface ). The largest supply cost management organization in healthcare, Novation manages more than $14 billion in annual purchases for VHA, UHC and HPPI members. For more information on Novation, go to www.novationco.com. This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. These forward-looking statements include statements related to the anticipated benefits of Neoforma's agreements with the healthcare organizations. There are a number of technological and business risks that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks and other risks are described in Neoforma.com's periodic reports filed with the SEC including its Form 10-K for the year ended December 31, 1999, its Form 10-Q for the quarter ended March 31, 2000 and its Proxy Statement, dated June 29, 2000, relating to the Novation transactions. Neoforma.com assumes no obligation to update the forward-looking information contained in this news release. Note to Editors: Neoforma.com, Inc., and www.neoforma.com are trademarks of Neoforma.com, Inc. Other Neoforma.com logos, product names, and service names are also trademarks of Neoforma.com, Inc., which may be registered in other countries. Other product and brand names are trademarks of their respective owners. |
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