Providence Health System re-ups with VHA

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Providence Health System has renewed its relationship with group purchasing organization (GPO) VHA Inc.

Under the new three-year arrangement, Providence will establish a customized group purchasing model with VHA and its supply company, Novation, to create what both groups are calling ProvSource. Joint management oversight will develop the strategies, guidelines and processes, and oversee implementation and ensure successful ongoing operations of ProvSource.

VHA and Novation also will dedicate full-time staff to this partnership, including individuals who will work on site with Providence staff.

Providence purchases approximately $500 million in supplies, drugs and professional services annually. Approximately $317 million of the total purchases are made through VHA agreements.

Providence Health System is a not-for-profit organization that includes 17 acute-care hospitals, 12 freestanding long-term care facilities, and 19 low-income and assisted-living facilities operating in Alaska, Washington, Oregon and California.