By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    degree for healthcare job
    What Are The Health Benefits Of Having A Degree?
    March 9, 2022
    custom software development is changing healthcare
    Digital Customer Journey Mapping and its Importance for Healthcare
    July 21, 2022
    tips for getting drugs from an online pharmacy
    How to Get Prescriptions Online Reliably and Cost-Effectively
    November 9, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Congresswoman’s Staff Renews Call for Funding of Care for Complex Head Injuries
    April 22, 2011
    More On Wellness Programs To Improve Health and Reduce Costs
    January 25, 2012
    Squandering Medicare’s Money
    June 9, 2011
    Latest News
    Top HIPAA-Compliant Messaging Apps for Healthcare Teams
    June 25, 2025
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
    Strengthening Healthcare Systems Through Clinical and Administrative Career Development
    June 13, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Medtronic Inc. Cancels Contracts With Novation Hospital Buyer Group-Wants to Save Money Negotiating Direct With Hospitals
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Medtronic Inc. Cancels Contracts With Novation Hospital Buyer Group-Wants to Save Money Negotiating Direct With Hospitals
Business

Medtronic Inc. Cancels Contracts With Novation Hospital Buyer Group-Wants to Save Money Negotiating Direct With Hospitals

BarbaraDuck
Last updated: August 23, 2017 9:32 pm
BarbaraDuck
Share
2 Min Read
SHARE

Whether or not this represents a savings for hospitals is not known yet but the company wanted to remove the “middlemen” so they could set their own pricing without the reliance of joining the buyers group. We kind of all know how volume sales work and bring the cost down, so in absence of such a big player in the group, other companies who are members could actually see pricing go up potentially. Last week Medtronic announced lay offs and there has also been talk of divesting the Physio Cardio company they own. Medtronic also stated they negotiate their own contracts locally for the most part and will break free of the 2 to 3 percent administration fee. Some money is going into software that supports their devices, more algorithms.

IRVING, Texas, Feb. 24, 2011 /PRNewswire/ — Novation, the leading health care supply contracting company, announced today that Medtronic Inc. has cancelled five contracts with Novation that cover cardiovascular and orthopedic products. Novation is owned by VHA Inc. and the University HealthSystem Consortium (UHC), and VHA and UHC members represent $2 billion in annual purchases for Medtronic in these product categories. Novation has been in constant contact with Medtronic and has made every effort to maintain member value in these high cost categories. Medtronic stated in a letter to Novation that the company wanted to manage their business relationships with hospitals locally, rather than through a national GPO contract. “This move will likely raise costs for member organizations by eliminating the price protection that members benefit from through Novation’s national agreements,” said Pete Allen, senior vice president of sourcing operations at Novation. “In addition, through our contracts members generate cooperative returns, and have more favorable terms and conditions. The contracts also protect members from pricing confidentiality clauses, eliminate freight fees, and mandate that new technology is added to contracts when the technologies are released.”

TAGGED:health care business
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

women dental care
What Is a Smile Makeover and How Much Does It Cost?
Dental health
June 30, 2025
HIPAA-Compliant Messaging Apps
Top HIPAA-Compliant Messaging Apps for Healthcare Teams
Global Healthcare Policy & Law Technology
June 25, 2025
recovering from injury
Rebuilding After Injury: Path to Physical and Emotional Recovery
News
June 22, 2025
scientist using microscope
When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
Global Healthcare
June 18, 2025

You Might also Like

studio xo
BusinessMobile HealthSocial MediaTechnology

Sowing the Future Wearables Fields

June 11, 2014
Image
Business

High Quality, Low Cost HealthCare Video Interview Series: Dr. James Spearman and TravelSurgeryUSA

November 27, 2012
rockies venture
BusinessFinance

Health Startups: Rockies Venture Club Nurtures Denver’s Ecosystem

November 19, 2014
medicare
BusinessHealth ReformPolicy & LawPublic Health

Will “Medicare As We Know It” Persist, or Will It Change?

June 14, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?