Bergen Brunswig and Kaiser Permanente Announce 5-Year, $4 Billion Strategic Partnership.ORANGE, Calif.--(BW HealthWire)--May 15, 1998-- Supply Channel Management Alliance Designed To Improve Efficiency For Kaiser And Its Members Bergen Brunswig Corporation (NYSE NYSE See: New York Stock Exchange :BBC BBC in full British Broadcasting Corp. Publicly financed broadcasting system in Britain. A private company at its founding in 1922, it was replaced by a public corporation under royal charter in 1927. ) and the nation's largest non-profit health plan, Kaiser Permanente Kaiser Permanente is an integrated managed care organization, based in Oakland, California, founded in 1945 by industrialist Henry J. Kaiser and physician Sidney R. Garfield. , today announced the signing of a five-year, $4 billion, prime vendor contract whereby both parties will share in the benefit from improved operating efficiencies with the ultimate goal of improving costs for today's healthcare consumers. The agreement, under which Bergen will supply pharmaceutical products to Kaiser facilities nationwide, represents approximately 70% of incremental new business for Bergen in the first year alone and substantially more in succeeding years based on Kaiser's growth projections. Donald R. Roden, Bergen's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "This strategic partnership with Kaiser Permanente exemplifies our shared confidence in creating supply channel management efficiencies for Kaiser pharmacies in 19 states -- contributing to the cost-effective service of Kaiser's nine million members. By establishing a Supply Chain Development Fund with a performance-based revenue-sharing formula, Kaiser and Bergen will work together to reduce costs while enhancing profitability. Kaiser's endorsement of us in this competitive environment validates Bergen's reputation for delivering all products ordered, on time, virtually all of the time. We are proud of our superior service, which has been earned by concentrating on our core fundamentals, prioritizing our investment in technology, and empowering well-trained associates to make the right decisions at the right time for our customers." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Dale Kramer, Kaiser's director of material services and pharmacy operations, "We chose Bergen as our partner in this venture based on their track record of excellent service levels and their proven ability in effective supply chain management. Among the initiatives to be put in place is a strategic purchasing alliance designed to reduce Kaiser's operating costs." To further achieve cost-savings based on supply channel efficiencies, Kaiser has agreed to test Bergen's Timed Inventory Management System (TIMS TIMS Thermal Ionization Mass Spectrometry TIMS The Institute of Management Sciences TIMS Thermal Infrared Multispectral Scanner TIMS Transportation Information Management System TIMS The International Molinological Society TIMS Tuberculosis Information Management System )(tm) in Southern California. "We are delighted to join forces with Kaiser as we have recently with other market leaders including Tenet Healthcare and PharMerica. We look forward to providing them with new opportunities for supply channel efficiencies and growing with these market 'consolidators' in their respective fields," said Brent R. Martini, president of Bergen Brunswig Drug Company. "With Kaiser's unanimous support we will challenge the status quo [Latin, The existing state of things at any given date.] Status quo ante bellum means the state of things before the war. The status quo to be preserved by a preliminary injunction is the last actual, peaceable, uncontested status which preceded the pending controversy. , innovating distribution systems which are unparalleled in today's provider-distributor relationships. For example, we will be initiating an integrated ordering system which offers seamless product delivery to Kaiser facilities and warehouse operations." Bergen Brunswig Corporation, a Fortune 500 company with annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of approximately $13 billion, is one of the nation's leading supply channel management companies. In addition to its diversified healthcare product offerings, the company offers innovative logistics management programs in pharmaceuticals and medical-surgical supplies to all healthcare venues. These programs are designed to help customers grow efficiently, improve their cost-effectiveness, and further support their focus on patient/consumer care. Kaiser Permanente is America's leading health care organization, serving 9.1 million members in 19 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . Founded in 1945 and headquartered in Oakland, California, it encompasses Kaiser Foundation Health Plan, Inc.; Kaiser Foundation Hospitals; the Permanente Medical Groups; as well as Community Health Plan in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and an alliance with Group Health Cooperative Group Health Cooperative, based in Seattle, Washington, is a consumer-governed nonprofit healthcare system. Established in 1947, it today provides coverage and care for about 540,000 people in Washington and Idaho and is one of the largest private employers in Washington. in Washington and Idaho. Some of the information set forth in this press release (including without limitation the company's statements regarding goals for the remainder of the current fiscal year) constitutes forward-looking statements which are subject to uncertainties which could cause actual results to differ materially from those projected or implied. The most significant of such uncertainties are described in Exhibit 99.1 to the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended September 30, 1997 and in other reports and exhibits filed with the Securities and Exchange Commission. Bergen Brunswig press releases are available at no charge through the company's Faxline. To receive a directory of available releases call 800/344-7508 and follow the voice-prompt instructions. You may also view the company's website at www.bergenbrunswig.com. For information on investing in Bergen Brunswig, please call the Investor Relations Investor relations The process by which the corporation communicates with its investors. department at 800/840-5131. CONTACT: Bergen Brunswig Lisa Riordan, Director, Investor Relations 800/840-5131 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion