VHA renews contract with Providence Health System

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Healthcare cooperative VHA Inc. renewed a commitment contract with the Seattle-based Providence Health System.

Under terms of the new agreement, Providence will establish a customized group purchasing model with VHA and its supply company, Novation. After functioning under a traditional group purchasing model for the past five years, the VHA says the organizations will implement a new approach called ProvSource.

Joint management oversight will be established to develop the strategies, guidelines and processes, oversee implementation and ensure successful ongoing operations of ProvSource. Additionally, VHA and Novation will dedicate full-time staff to this partnership, including individuals who will work on site with Providence staff.

According to the VHA, 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.