In one of the first consolidations in the group purchasing industry in several years, Healthcare Purchasing Partners International, Irving, Texas, said last week that it has agreed to buy the group purchasing assets of Healthcare Services of New England, Quincy, Mass. Financial terms of the deal were not disclosed.
Owned by VHA and University HealthSystem Consortium, which also jointly own group purchasing titan Novation, HPPI provides group purchasing services to more than 8,000 hospitals and other healthcare organizations throughout the country. HPPI and HSNE have had a relationship since 1996 under which HSNE members purchase supplies through HPPI contracts, which are negotiated and managed by Novation.
The acquisition will give HPPI an opportunity to grow its business directly, said Eldon Petersen, HPPI's president. Members used HPPI contracts to buy more than $2.3 billion in supplies in 2003, including $360 million purchased by HSNE members. The deal is expected to close within 90 days.