Baxter International last week received contract renewals worth $300 million over five years from Premier Health Alliance, which last year significantly cut its dealings with Baxter because of concerns about the company's ethics.
The three contracts are expected to bring Baxter some new business, a Baxter spokeswoman said, but she declined to estimate the extent of the added business.
Under a five-year contract, Deerfield, Ill.-based Baxter will be Premier's sole supplier of customized surgical-procedure kits, standard packs and gowns. Under two three-year contracts, Baxter will supply Premier members with cardiovascular devices.
Last year, Westchester, Ill.-based Premier cut its purchases from Baxter by $50 million, or 20%. Among the reasons it reduced its purchases were Baxter's guilty plea to breaking U.S. law against aiding the Arab economic boycott of Israel and disputes with Baxter about price discounts (May 31, 1993, p. 4). Premier's 180 members buy about $1 billion in goods and services annually through Premier contracts.
"This demonstrates that we are continuing to earn their business and to resolve any issues they have," the Baxter spokeswoman said. A Premier executive referred questions to the alliance's public relations office. Spokespeople there weren't available for comment at deadline.
In unrelated purchasing news, SunHealth Alliance last week awarded a five-year contract, valued at more than $500 million, to Abbott Laboratories. Charlotte, N.C.-based SunHealth represents 151 hospitals and healthcare facilities.
The agreement expands a previous contract that initially was awarded in 1986. It includes pharmaceuticals, diagnostics, drug-delivery systems, intravenous solutions, nutrition supplies, medical-surgical supplies, and critical-care and anesthesia products. Abbott, of Abbott Park, Ill., will be the only company providing most of those products under contract with SunHealth.