Hospitals responded to an increase in morbidly obese patient admissions by increasing the amount training, services and supplies needed to serve the growing patient population, according to Novation’s 2011 bariatric survey.
The group purchasing organization’s nationwide poll of VHA and UHC hospitals saw a 58 percent increase in admissions of morbidly obese patients in the past 18 months.
The facilities that offered gastric banding surgery reported a 78 percent increase in the number of bariatric-related reconstructive surgeries.
Stryker Corp. (NYSE:SYK) inked new deals for its joint preservation arm and its interventional spine division this week.
The Kalamazoo, Mich.-based company added its inflatable vertebral augmentation system (iVAS) to its national agreement with supply contracting company Novation LLC.
The deal makes Stryker the single source for balloon-assisted spine augmentation for health care groups UHC, VHA Inc, and Provista LLC, according to the release.
When medical device goliath Medtronic Inc. (NYSE:MDT) canceled $2 billion worth of supply contracts with group purchasing organization Novation LLC in February, Wall Street analysts speculated that it might be the start of a larger trend of medical device industries bucking GPOs.
A Senate probe led by Sen. Max Baucus (D-Mont.) wants answers from Medtronic Inc. (NYSE:MDT) CEO Bill Hawkins on why his company decided to spike contracts with hospital group purchasing organizations.
The Fridley, Minn.-based medical device monolith made waves and pleased Wall Street a few months back when it canceled deals with Novation LLC and Premier Inc., saying it wanted to shift its sales operations to deal directly with hospitals. Now Baucus, in an open letter to Hawkins, wants answers to a lengthy series of questions about the decision.
Medtronic Inc. (NYSE:MDT) is not changing its stance on group purchasing organizations, despite recently canceling several contracts with Premier and Novation, two of the industry’s largest GPOs.
“There’s a lot of speculation around here that a strategic change is going on,” Medtronic CFO Gary Ellis told analysts at the Barclay’s Capital Investors Conference in Miami. “That is not the case.”
Medtronic Inc. (NYSE:MDT), already looking to reshape its business by laying off thousands of workers, is making another big streamlining move: Canceling contracts worth $2 billion a year with Novation LLC, a group purchasing organization.
The Fridley, Minn.-based medical device maker announced its restructuring plan as part of its third-quarter results release earlier this week. Now Novation says Medtronic is putting the kaibosh on five deals covering cardiovascular and orthopedic products.