Novation, the joint supply company of VHA and University HealthSystem Consortium, has inked a dual-source three-year contract for document products and services that takes effect Jan. 1. Moore North America, Lake Forest, Ill., and Reynolds and Reynolds, Dayton, Ohio, will share the business, which covers a range of forms, labels and related services. Sales under the contract could reach $1.5 billion, according to Irving, Texas-based Novation, which expects to save at least $33 million over next-best market pricing through the agreements.
Pediatrix Medical Group reported a 35% decrease in net income to $4.9 million, or 32 cents per share, for the third quarter ended Sept. 30, compared with net income of $7.6 million, or 48 cents per share, in the year-ago quarter. The Fort Lauderdale, Fla.-based neonatology practice operator said net patient service revenues grew 17% to $57.9 million. For the nine months, net income declined 4% to $20 million, or $1.27 per share, from $20.9 million, or $1.31 per share, in the year-ago period. Revenues rose 26% to $168.5 million.
U.S. Oncology reported net income of $15 million, or 15 cents per share, for the third quarter ended Sept. 30, unchanged from the year-ago quarter. The Houston-based oncology practice management company said revenues grew 28% to $277.8 million. For the nine months, net income dropped 31%, to $30.3 million, or 30 cents per share, from $44.1 million, or 44 cents per share, in the year-ago period. Revenues rose 29% to $793.4 million. The results include merger-related costs of $2.7 million for the third quarter and $27.2 million for the nine-month period. U.S. Oncology was formed by the merger of Houston-based American Oncology Resources and Dallas-based Physician Reliance Network.