Printer Friendly


 ORLANDO, Fla., April 24 /PRNewswire/ -- Voluntary Hospitals of

America, Inc. ("VHA") announced today it is returning more than $277 million to its hospitals in cooperative cash and equity distributions, manufacturers incentives, savings and other tangible benefits -- for an average return on assessment of 8.4 to one.
 In recognition of their participation in national and regional programs during 1991, VHA hospitals and multihospital systems will receive $51.7 million in cash and $225.7 million in cooperative equity and savings from VHA's supply chain management programs and other national and regional programs.
 The 1991 cooperative distributions are the second VHA has made to its hospitals since the alliance became a cooperative effective Jan. 1, 1990.
 VHA cooperative cash distributions in 1991 almost doubled to $12.4 million compared to the $6.4 million in cash distributed to hospitals last year. VHA increased its 1991 cooperative cash payout to 30 percent over 1990's 20 percent level. Cooperative patron's equity certificates -- distributed in the form of patron's equity certificates and to be redeemed for the hospitals in cash at future dates -- was $29 million in 1991, an increase of 17 percent over $24.8 million distributed in patron's equity the previous year.
 Manufacturer incentives were $29.3 million in 1991, compared to $25.9 million in 1990, an increase of 13 percent. The incentives are paid to VHA hospitals based on their purchases of specific products and services from companies under contract with VHA. VHA hospitals also received $7.9 million in regional cash distributions, and VHA shareholders received $2.1 million from the redemption of VHA preferred stock.
 In addition to these cash benefits, hospitals realized $196.7 million in savings and other benefits from VHA's supply chain management and other national and regional programs.
 VHA President and CEO, C. Thomas Smith called 1991 a year of significant accomplishment for VHA. "Due to strong support from VHA hospitals, we achieved record results and participation in our programs and services at the regional and national levels."
 Chief executives from VHA's patron hospital -- shareholders, partners and their controlled facilities -- will receive checks and patron's equity certificates next month through VHA's 29 regional health care systems. The patronage distributions are based on assessments paid to VHA and on participation in VHA supply chain management and other national and regional programs. The more a hospital participates, the larger its return.
 As part of its five-year cash distribution plan, VHA said last year it expects to distribute $75 million in cash to VHA hospitals by the end of 1995 by increasing cash returns on its patronage distributions to 50 percent and redeeming patron's equity certificates and preferred stock issued to VHA shareholders.
 Based in Irving, Texas, Voluntary Hospitals of America is a national alliance of 660 not-for-profit health care organizations and their 200 affiliates. The hospitals and multihospital systems have a total of 222,000 licensed beds.
 -0- 4/24/92
 /CONTACT: Mack Haning of Voluntary Hospitals of America, 214-830-0253 or 407-934-3439/ CO: Voluntary Hospitals of America Inc. ST: Florida IN: HEA SU:

TQ -- NY046 -- 2446 04/24/92 12:19 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 24, 1992

Related Articles
VHA Members Realized $799 Million in Value in 1998.
VHA Inc. Reports $944 Million in Value for Members in 1999.
VHA Inc. Announces Mayo Foundation Joining National Alliance.
VHA Inc. Delivers $1.15 Billion in Value for Members in 2000.
VHA Delivers $1.27 Billion in Value for Members in 2001; VHA Provided 59-to-1 Return to Members Last Year.
/C O R R E C T I O N -- VHA Inc./.
VHA's Tom Smith to Retire.
VHA Delivers $1.53 Billion in Value for Members in 2002.
VHA Initiates Planned Sale of Neoforma Stock, Distributes Cash to Member Hospitals; VHA Files Form 144 With SEC Stating Intent to Sell Up to 300,000...
VHA Delivers $1.13 Billion in Value for Members in 2003.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters