BIG NEWS:
Neoforma.com and Novation Reach Target Ahead of Schedule; 79 Hospitals Representing $2 Billion in Purchases Sign Up with Marketplace@Novation
SAN JOSE, Calif. & IRVING, Texas--(BW HealthWire)--Sept. 7, 2000-- Neoforma.com, Inc. (Nasdaq:NEOF) and Novation today announced the addition of 39 new healthcare facilities, bringing to 79 the number of hospitals signed to purchase supplies through Marketplace@Novation(TM), the online purchasing solution powered by Neoforma. This figure exceeds Neoforma's goal to have 56 hospitals signed onto Marketplace@Novation before year end.
The 79 healthcare organizations that have aligned themselves with Marketplace@Novation represent more than $2 billion in annual medical supply purchases. These healthcare organizations have committed a minimum of 50 percent of their total supply purchases to Marketplace@Novation.
Of the 79 hospitals that have joined to date, 56 are members of VHA Inc. and 22 are members of the University HealthSystem Consortium (UHC), the two healthcare alliances that own Novation. In addition, one healthcare organization that purchases supplies through HealthCare Purchasing Partners International(TM), a group purchasing company owned by VHA and UHC, has signed up to use Marketplace@Novation.
"The fact that it is early September and we have already substantially exceeded our hospital sign up goal for the year is a true testament to the services offered by Marketplace@Novation," said Bob Zollars, chairman, president and chief executive officer of Neoforma. "Decision makers at hospitals and other healthcare facilities across the country have realized the significant benefits of procuring through this private marketplace and are enthusiastically anticipating the benefits that online purchasing will offer them."
"We recognized the purchasing solution provided by Neoforma and Novation as the best fit for our facility," said David Pindroh, director of materials management at University of California, Davis, Health System. "We are excited to enter the era of Internet-based procurement and believe that Marketplace@Novation will offer the most efficient and effective means to do so."
Each of the 39 new hospitals will be individually integrated into Marketplace@Novation, allowing each organization to utilize the Marketplace's contracting, procurement and supply chain solutions, while leveraging the healthcare organization's existing information systems technology without jeopardizing its established trading relationships. The first wave of hospitals is in the technology integration process and will go live in early November. The next wave of hospitals will go live in early December.
"We are delighted by all the activity surrounding Marketplace@Novation: the rapid stream of hospital sign ups, as well as the integration and implementation work by Neoforma," said Mark McKenna, president of Novation. "We began the year with the mission to introduce online purchasing to members, and I'm pleased to see that mission quickly becoming reality."
In May 2000, Neoforma signed an exclusive 10-year amended agreement to provide e-commerce procurement solutions for Novation, the largest supply cost management company in healthcare. In conjunction with this agreement, the two companies established Marketplace@Novation. In related agreements, VHA Inc. and the University HealthSystem Consortium, the owners of Novation, also purchased ownership interests in Neoforma.
About Neoforma.com, Inc.
Neoforma.com, Inc., is a leading provider of business-to-business e-commerce solutions to the global medical marketplace. Focused on transforming the inefficient and highly fragmented healthcare supply chain, the company provides online solutions that enable buyers to lower product-procurement costs, while giving suppliers a new, highly efficient direct marketing channel. Neoforma is building multiple custom marketplaces to meet the needs of leading healthcare organizations such as the members of VHA and UHC. Neoforma's comprehensive e-commerce solutions are focused on improve the process of healthcare purchasing, from planning to procurement to liquidation. For more information, visit the company's Web site at www.neoforma.com.
About Novation
Novation is the supply company of VHA Inc. and the University HealthSystem Consortium, two national healthcare alliances. Based in Irving, Texas, Novation serves the purchasing needs of more than 2,000 members and affiliates of VHA and UHC, as well as more than 4,600 members of HealthCare Purchasing Partners International (HPPI). The largest supply cost management company in healthcare, Novation manages $15 billion in annual purchases for VHA, UHC and HPPI members. For more information on Novation, go to www.novationco.com.
This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. These forward-looking statements include statements related to the anticipated benefits of Neoforma's agreements with the healthcare organizations. There are a number of technological and business risks that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks and other risks are described in Neoforma.com's periodic reports filed with the SEC including its Form 10-K for the year ended December 31, 1999, its Form 10-Q for the quarter ended March 31, 2000 and its Proxy Statement, dated June 29, 2000, relating to the Novation transactions. Neoforma.com assumes no obligation to update the forward-looking information contained in this news release.
Note to Editors: Neoforma.com, Inc., and www.neoforma.com are trademarks of Neoforma.com, Inc. Other Neoforma.com logos, product names, and service names are also trademarks of Neoforma.com, Inc., which may be registered in other countries. Other product and brand names are trademarks of their respective owners.
CONTACT:
For Neoforma.com
Tim Brons, 212/213-0006 ext. 20
tbrons@ny.burnsmc.com
or
Novation
Lynn Gentry, 972/581-5255
lgentry@novationco.com
KEYWORD: CALIFORNIA TEXAS
NOTE: Disclaimer
I had a very large holding in this stock and took profits on half of them today. Will hold the rest for much higher prices. This was just so I can sleep better. I wish I had read all the news first. |
