Hospital group purchasing organizations Novation and Premier signed seven new contracts this week for everything from surgical safety technology to central venous access catheters.
Novation awarded a three-year contract to Teleflex Inc. (NYSE:TFX) for its respiratory, anesthesia airway, central venous access, endotracheal tubes and chest drainage products.
The agreement will begin in January 2012 and extend through December 2014, according to a press release.
For its part, Premier Healthcare Alliance signed a three-year agreement with Medline Industries for its ClearCount surgical sponge detection system to prevent “never events” – sponges left in patients after surgery.
The GPO also inked new deals with Covidien (NYSE:COV) and AngioDynamics (NSDQ:ANGO) for dialysis products and accessories. B. Braun Medical Inc., Hemosphere and Medical Components Inc. also signed contracts with Premier for dialysis materials.
Hospital GPOs have been vocal about signing contract recently, perhaps in response to Medtronic’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 Novation in February.
Earlier this week, Premier signed a three-year deal with Lantheus Medical Imaging Inc. for its Definity ultrasound contrast agent and Ablavar magnetic resonance angiography imaging agent.