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In Brief: VHA/Ethicon

This article was originally published in The Gray Sheet

Executive Summary

VHA/Ethicon: VHA combines previous supply pacts with Johnson & Johnson's Ethicon and Ethicon Endo-Surgery business into a single contract for supply of sutures and endoscopic instruments. The renewed agreement, which expires in June 2000, "will provide additional savings over the previous agreement," VHA says. VHA pursued a single agreement "because a survey of VHA members indicated that two-thirds of them would accept a committed agreement if it provided better discounts," the hospital group says. VHA recently announced plans to combine its supply chain management business with the University HealthSystem Consortium's supply operation. The combined entity is expected to renew an agreement with J&J when the current pact expires. UHC currently offers sutures and endoscopic instruments supplied by Sherwood, Davis & Geck and U.S. Surgical...
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