Abbott Laboratories last week signed a seven-year, multibillion-dollar purchasing contract with VHA for a wide range of medical products.
The agreement, effective June 1, covers intravenous solutions, nutritional products and various equipment.
Since 1985 Abbott, based in Abbott Park, Ill., has had contracts with Irving, Texas-based VHA covering intravenous products and other supplies. However, VHA estimates the deal will yield $75 million in new savings to members over the life of the contract.
The new agreement will be administered by Novation, the joint supply company formed Jan. 1 by VHA and University HealthSystem Consortium, Oak Brook, Ill.