VHA Members Launch Mid-America Consolidated Services Center

IRVING, TX, Jan 12 (MARKET WIRE) --
VHA Inc., the national health care alliance, today announced the
formation of Mid-America Service Solutions LLC, a Consolidated Services
Center owned by and serving six hospital groups in Kansas and Missouri.
The CSC is designed to advance supply chain efficiency, decrease costs,
streamline operations and help hospitals elevate supply chain performance
to levels enjoyed by other industries.

CSCs are VHA's latest enhancement to its supply network strategy that
focuses on connecting members and suppliers in unique and valuable ways at
the regional level. Member-owners of the Mid-America CSC purchase more
than $520 million in supplies annually.

Mid-America Service Solutions has signed an outsourcing agreement in which
VHA will provide contracting, logistics, master file management, customer
service, information technology, financial and overall CSC operations
management.

Mid-America Service Solutions is comprised of all health care
organizations that are part of:

-- CoxHealth, Springfield, Mo.
-- Freeman Health System, Joplin, Mo.
-- Saint Luke's Health System, Kansas City, Mo.
-- Hays Medical Center, Hays, Kan.
-- Salina Regional Health Center, Salina, Kan.
-- Stormont-Vail HealthCare, Topeka, Kan.

As a limited liability company, the CSC will be recognized as a
single VHA member entity and as a virtual integrated delivery system in
the industry.

The CSC connects and centralizes the contracting, procurement,
distribution, logistics and other important hospital supply chain
activities utilizing a proprietary information platform. The CSC gives
hospitals significantly greater control over their supply chain activities
and strengthens their ability to lower their operating expenses.

"VHA is excited to forge new territory in facilitating and operating these
groundbreaking supply networks designed to remove costs from the supply
chain," said Scott Downing, executive vice president for supply chain
services at VHA. "The CSC changes the paradigm of the health care supply
chain as members share their competencies and services with VHA and
collectively drive new value in the market that we could not hope to
achieve on a one-by-one basis."

"Our hospital is excited to be an early adopter of the CSC," said Dale
Montgomery, vice president of support services at Hays Medical Center. "We
are eager and excited to reap the benefits from this innovative supply
chain model that represents the next-generation of supply chain management
efficiencies."

Product standardization and improving product utilization are key factors
in the success of CSCs. Novation, VHA's contracting services company,
will provide custom contracting support. VHA will utilize the health care
industry's largest proprietary supply chain database to drive efficiency.
VHA is also partnering with Owens & Minor, Inc., to provide a customized
warehousing operation designed to meet the specific needs of the
Mid-America Service Solutions' health care organizations. VHA and
Mid-America Service Solutions chose Owens & Minor because of the company's
successful track record in establishing and operating consolidated service
centers.

"We must continue to challenge the traditional approach to health care
supply chain management and we think the Consolidated Services Center is
one answer to that challenge," said Chuck Robb, chief operating officer
and chief financial officer, Saint Luke's Health System, Kansas City, Mo.
"This is medical supply volume purchased by one entity, the CSC. It is
paid for by one entity and often shipped to one entity. The real
cost-saving is realized in this level of integration. Supplies will then
be distributed in a cost-effective manner to member hospitals."

About VHA Inc. - VHA Inc. is a national alliance of leading not-for-profit
health care organizations that work together to improve the health of the
communities they serve. VHA delivers industry-leading supply chain
management services and enables regional and national member networks to
improve clinical and operational performance and drive sustainable
results. Based in Irving, Texas, VHA has 16 local offices serving more
than 1,400 hospitals and 23,000 non-acute health care organizations
across the United States.

Contact Information:
Maxine Levy
VHA
972-830-7845
Email Contact

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