Hospital group purchasing organizations Novation and Premier signed new contracts this week, covering patient monitoring solutions, intra-aortic balloon catheters and pumps.
Novation awarded a three-year contract to Spacelabs Healthcare, a subsidiary of OSI Systems Inc. (NSDQ:OSIS), for patient monitoring and connectivity solutions.
The contract will go into effect Dec. 1, 2011, and includes two one-year extension options, according to a press release.
Premier in turn announced its own new deal for Teleflex Inc. (NYSE:TFX) subsidiary Arrow International’s intra-aortic balloon catheter and pumps. The deal is effective Nov. 1, 2011.
Hospital GPOs have been vocal about signing contract recently, perhaps in response to Medtronic Inc.’s (NYSE:MDT) headline-making, Wall Street-pleasing decision to cut several contracts worth an estimated $2 billion a year for its cardiovascular and orthopedic products with Irving, Texas-based GPO Novation in February.
"As demonstrated by these agreements, suppliers continue to find value in the Novation relationship," Novation VP of contract and program services Michael Vintges said in a press release in July. "Suppliers find that participating in our contracts provides increased brand awareness and market share through access to the members we serve."
Just last week Premier signed a deal with Getinge Group (STO:GETI B) subsidiary Maquet Cardiovascular for its intra-aortic balloon catheters and pumps, including its CS300 product line, as well as its Mega, Sensation, and Linear catheters used to treat acute heart failure, irregular heart rhythms and other cardiac problems.