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In Brief: General Medical/Tenet Healthcare

This article was originally published in The Gray Sheet

Executive Summary

General Medical/Tenet Healthcare: Firms sign exclusive three-year contract for medical and surgical supply distribution services whereby Richmond, Virginia-based General Medical will provide supplies to Tenet's 73 acute care hospitals and other Tenet-owned medical facilities. Under terms of the agreement, an additional 1,600 healthcare facilities, represented by members of Tenet's Buy Power group purchasing program, also agree to use General Medical for distribution services. The contract, effective Nov. 1, is expected to result in purchases "in excess of $100 mil. a year," according to a General Medical release. On a pro forma basis, Tenet -- formed earlier this year through the merger of National Medical Enterprises and American Medical Holdings, Inc. -- would have generated approximately $5.1 bil. in revenues for the 12 months ended Nov. 30, 1994...

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