WESTMINSTER, Colo. and SAN JOSE, Calif.—December 17, 2001—Willis-Knighton, a four-hospital system in Louisiana, and Aircast, Inc., a supplier of products widely used to provide functional pneumatic support for orthopedic injuries, are the first of a targeted list of customers to begin conducting supply transactions using the Integrated Solution developed by Global Healthcare Exchange, LLC (GHX) and Neoforma, Inc. (Nasdaq: NEOF).
Willis-Knighton placed its first electronic orders with Aircast through the Integrated Solution last month, allowing Willis-Knighton to receive pricing information and order confirmation from Aircast. The items ordered were shipped from Aircast to Willis-Knighton the same day. Willis-Knighton has been conducting business through Marketplace@Novation™ since January 2001, and now will receive additional benefits through the Integrated Solution.
Hospitals that connect to Marketplace@Novation have access to the Integrated Solution, which interfaces with GHX’s AllSource™ catalog, the industry’s most up-to-date and accurate electronic catalog. In addition, GHX has licensed portions of Neoforma’s NeoConnect™ solution suite, which supports the rapid integration of trading partners for supply chain collaboration, providing immediate connectivity benefit for GHX suppliers. The combination of these two industry-leading technologies takes hospitals and suppliers like Willis-Knighton and Aircast a step beyond communication via phone and fax to the electronic transmission of data, or EDI. It allows all parties involved to improve data accuracy, creating efficiencies at all levels in the process.
GHX and Neoforma have targeted additional customers to integrate on this unique and innovative technology. Eventually, the Integrated Solution will be the key vehicle by which participating suppliers are integrated into the Marketplace@Novation, which currently serves more than 580 healthcare providers.
Both Willis-Knighton and Aircast have already begun to reap benefits through their participation. Greg Weeks, director of materials management at Willis-Knighton, says, “We’ve seen improvements in the accuracy and efficiency of our transactions.” Prior to being connected through the Integrated Solution, Willis-Knighton and Aircast were limited to conducting business with one another through phone and fax.
“E-commerce through Marketplace@Novation has improved our relationships with connected suppliers and reduced the number of staff hours devoted to the procurement process. The additional benefits resulting from our new connection to the Integrated Solution will further accelerate these services and broaden our access to the AllSource catalog. We anticipate that the Integrated Solution will reduce rework and error reconciliation,” Weeks added.
Aircast is equally enthusiastic about the Integrated Solution. Vice President Sue McKay believes that to realize the promise of e-business, the medical device industry needs to build critical mass on a common platform. “The Integrated Solution gives us an efficient and easy way to trade electronically with a large number of providers currently ordering from us via phone or fax. As a result, we will be able to more effectively and efficiently manage multiple and simultaneous customer relationships,” explains McKay.
GHX and Neoforma entered into this collaboration in late August to deliver a more robust end-to-end solution to help their respective supplier and hospital customers more quickly realize the benefits of e-commerce and minimize the costs of connectivity and information exchange.
Commenting on the GHX-Neoforma alliance, Neoforma Chairman and Chief Executive Officer Bob Zollars said, “Working together, we integrated our technologies on a fast track in order to speed adoption and benefit realization of our hospital and supplier customers. Our mutual focus on providing value allowed this unique collaboration to quickly yield results.” GHX President Mike Mahoney agreed, adding, “We determined that, even though our respective businesses were successful independently, our combined technologies could provide greater value for our customers right from the start.”
About Global Healthcare Exchange
Global Healthcare Exchange, LLC (GHX) is an Internet-based trading exchange from which hospitals can purchase both medical and non-medical products more easily, quickly, and accurately than ever before. GHX is building a normalized, verified industry standard catalog, which will take advantage of deep connectivity between GHX, hospitals, and suppliers to improve efficiencies and add value throughout the healthcare supply chain. The privately held company was founded in March 2000 and its membership now includes more than 100 supplier members and nearly 600 hospital members, representing 70 integrated delivery networks (IDNs). Equity members of GHX include Johnson & Johnson; GE Medical Systems; Baxter International, Inc.; Abbott Laboratories; Medtronic, Inc.; Becton, Dickinson & Co.; Boston Scientific Corporation; C.R. Bard, Inc.; Guidant Corporation; Siemens Medical Solutions and Tyco International, Ltd. For more information visit www.ghx.com.
About Neoforma
Neoforma builds and operates Internet marketplaces that empower healthcare trading partners to optimize supply chain performance. Neoforma uses proven, scalable technologies to provide customized marketplace solutions and services that enable customers to maximize their existing technology and supply chain relationships. Healthcare providers, leading group purchasing organizations, manufacturers and distributors choose Neoforma as their e-commerce partner. For more information, visit the Company’s Web site atwww.neoforma.com.
About Marketplace@Novation
Marketplace@Novation is the e-commerce marketplace offered by Novation, the supply chain management company of VHA Inc. and the University HealthSystem Consortium (UHC). Marketplace@Novation, built and operated by Neoforma, facilitates the efficient exchange of information with VHA and UHC members and their suppliers for the procurement of goods and services, resulting in streamlined processes, reductions in administrative costs and more efficient health care purchasing across the supply chain. The Integrated Solution offers Marketplace@Novation customers accelerated access to the many benefits of e-commerce.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements include statements related to the future benefits that customers of Neoforma and/or GHX may realize. These forward-looking statements are based on current expectations, forecasts and assumptions and involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks include, but are not limited to, the ability of Neoforma to deliver anticipated functionality to customers, and suppliers’ and hospitals’ willingness to embrace Neoforma’s technology. These risks and other risks are described in the Company's periodic reports filed with the SEC including its Form 10-K for the year ended December 31, 2000, its Form 10-Q for the quarter ended September 30, 2001 and its Proxy Statement dated July 6, 2001. Neoforma assumes no obligation to update the forward-looking information contained in this news release.
Neoforma is a trademark of Neoforma, Inc. Other Neoforma logos, product names and service names are also trademarks of Neoforma, Inc., which may be registered in other countries. Other product and brand names are trademarks of their respective owners.