Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By



Executive Summary

The Voluntary Hospitals of America's corporate office has held discussions with 25 regional distributors regarding contracts with VHA's new hospital supply subsidiary, and expects to sign two to six final agreements within the next 60 to 90 days. The group of 440 affiliated not-for-profit hospitals announced its intention of forming a new subsidiary company to distribute supplies and materials to VHA hospitals on June 13. With the development of an internal supply company, VHA plans to become a "fully integrated national health care delivery system," the organizaton said. VHA Supply Company services will include a "comprehensive information system, including an electronic order entry system and a supply data base," VHA noted in a release. The supply subsidiary will function through a network of regional distributors. Deliveries could begin as early as September or October, a spokesperson said. The supply company will provide as "broad a range as possible of products," with an eventual goal of encompassing all product areas, he added. The hospital group expects to realize savings of 3% to 12% for member facilities once the supply subsidiary is underway, according to the release. At present, VHA's primary supplier is American Hospital Supply (AHSC). The group has a three-year contract with AHSC that is valued at about $750 mil. The contract runs into 1987. VHA began moving in the direction of greater self-sufficiency last August, when it signed its first co-labeling agreement with an orthopedic soft goods mfr. DeRoyal Industries. Currently, "private label agreements are under negotiation for the provision of virtually all hospital supplies," VHA said. "Since its establishment in 1977, shared purchasing and materials management have been key elements in VHA's goal to improve the competitive position of the voluntary hospital sector," VHA Chairman and Chief Executive Officer Don Arnwine commented.

You may also be interested in...

Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth




Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts