VHA earned $162.3 million in operating income on $470.8 million in revenue in 2004, a 34.6% margin. That was up 34.1% from $121 million in operating income in 2003. The hospital alliance had $451.5 million in revenue that year, for a 26.8% operating margin. VHA said it will distribute $367 million in cooperative cash payments, equity redemptions and manufacturer incentives to 1,954 members this year, up 17% from $315 million in distributions in 2004. VHA members bought more than $20.1 billion in supplies and services through VHA and its purchasing organization, Novation, in 2004, a 27% increase over 2003. Greater member participation and VHA's success in reducing operating costs resulted in greater cash distributions and higher overall savings on purchases, officials said at VHA's annual leadership conference this week in Atlanta. Total purchases through Novation, which VHA owns jointly with University HealthSystem Consortium, exceeded $23.7 billion in 2004, with $18.4 billion of the purchases by VHA members. -- by Cinda Becker
VHA income rises 34%; member purchases up 27%
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