In a joint venture with the Greater New York Hospital Association, Premier has been handed a 25% stake in Innovatix, a 9-year-old, for-profit group purchasing organization founded by the GNYHA and focused on the alternate-care market.
Officials told Modern Healthcare that although no money is changing hands, the companies are partnering with the aim of capturing an even greater share of an estimated $100 billion market. Innovatix serves customers that include home-infusion agencies, medical oncology practices and nursing homes, and is on track to do $1.2 billion in sales this year even without Premier's involvement, said John Sganga, Innovatix's president and chief executive officer. With Premier's resources and expertise, Innovatix is expected to purchase $2 billion in supplies by year-end, and within two years purchasing volume could grow to as much as $4 billion, he said.
"The value and prospects of the company will be significantly increased because of Premier's name," said Lee Perlman, president of GNYHA Ventures, a for-profit, wholly owned subsidiary of the GNYHA, which also markets the Premier portfolio. Perlman added that there is room for consolidation within the alternate-care marketplace and did not rule out deals with other alternate-site GPOs in the near future.