Providence Health System in Seattle has re-signed with hospital cooperative VHA in a three-year agreement that departs from the traditional group purchasing model of the last five years to establish a customized group purchasing arrangement with VHA and its supply company, Novation. The new venture, which will be jointly managed, is called ProvSource. Under the agreement, VHA and Novation will dedicate full-time staff to the partnership, including employees who will work onsite with Providence. Officials said that customized contracting -- a growing trend in group purchasing -- would allow Providence to continue to benefit from the purchasing power of VHA while gaining the flexibility to tailor contracts to the system's needs. Providence purchases approximately $500 million in supplies annually, about $317 million of that through VHA agreements. -- by Cinda Becker
Providence-VHA deal has a twist
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