Health & Fitness
Health and Fitness
Health and Fitness
Thu, June 10, 2010
Wed, June 9, 2010
Tue, June 8, 2010 Medical Action Renews Major Three-Year, Sole Source Agreement to Supply Patient Bedside Plastics and Stainless Products
BRENTWOOD, N.Y.--([ BUSINESS WIRE ])--Medical Action Industries Inc. (NASDAQ:MDCI), a leading supplier of medical and surgical disposable products, today announced that it has renewed a three-year, sole source national contract with Novation LLC, one of Americaa™s leading healthcare supply contracting companies, to provide patient bedside plastics and stainless steel products to the members of VHA Inc., the University HealthSystem Consortium (UHC) and Provista, LLC.
"Medical Action was the one supplier to receive top scores on all of our membersa™ criteria, including financial factors and standardization value, and on the member preference survey"
This agreement, which is effective July 1, 2010, is a renewal of an existing agreement between the two organizations and names Medical Action Industries Inc. as a sole vendor, it does not establish minimum purchase requirements or require Novationa™s members and affiliates to purchase the companya™s products.
Under the terms of the agreement Medical Action has also been selected to participate in Novationa™s aPatient Care Standardization Program,a which allows Medical Action to provide even greater value to the members served by Novation.
In addition to patient utensils, such as wash basins, bedpans and urinals, the agreement also calls for Medical Action to be the exclusive supplier of specimen containers, laboratory plastics, reusable plastics and stainless steel products through the NOVAPLUS® private label program. Other terms of the agreement were not disclosed.
aNovation is a valued partner and we are pleased and proud to renew this sole source agreement,a said Medical Action Chief Executive Officer and President Paul D. Meringolo. aThis contract recognizes our longstanding commitment to excellence in both product quality and customer service. It also highlights the ability of our Executive Healthcare Services team to strengthen relationships and develop strategic partnerships with group purchasing organizations (GPOs), integrated delivery networks (IDNs) and other customers in the healthcare community as Medical Action focuses on moving to its next level of growth. Todaya™s announcement certainly exemplifies our company credo ato be the trusted partner, delivering innovative solutions to the healthcare community for the purpose of improving quality care and enhancing the patient experience.a™a
aMedical Action was the one supplier to receive top scores on all of our membersa™ criteria, including financial factors and standardization value, and on the member preference survey,a said Peter Allen, Novation senior vice president of sourcing operations. aWe welcome the renewal of this agreement with our Medical Action partners.a
Medical Action is a diversified manufacturer and distributor of disposable medical devices and a leader in many of the markets where it competes. Its products are marketed primarily to acute care facilities in domestic and certain international markets. The Company has expanded its target market to include physician, dental and veterinary offices, out-patient surgery centers, long-term care facilities and laboratories. Medical Actiona™s products are marketed nationally by its direct sales personnel and extensive network of healthcare distributors. The Company has preferred vendor agreements with national and regional distributors, as well as sole and multi-source agreements with group purchasing organizations. Medical Actiona™s common stock trades on the NASDAQ Global Select Market under the symbol MDCI and is included in the Russell 2000 Index.
Novation, founded in 1998, is the leading healthcare supply contracting company for more than 25,000 members of VHA Inc. and the University HealthSystem Consortium (UHC), two national healthcare alliances, and 5,500 members of Provista, LLC, representing 28,000 sites. Novation provides alliance members contract and price management and spend management services. Based in Irving, Texas, Novation develops and manages competitive contracts with more than 600 suppliers. VHA, UHC and Provista members used Novation contracts to purchase nearly $37.8 billion in products and services during 2009.
This news release contains forward-looking statements that involve risks and uncertainties regarding Medical Actiona™s operations and future results.Please see the Companya™s filings with the Securities and Exchange Commission, including, without limitation, the Companya™s Form 10-K and Form 10-Qs, which identify specific factors that would cause actual results or events to differ materially from those described in the forward-looking statements.
