GPO Novation signs Biotronik

Roughly two weeks after inking a 30-month agreement for cardiac rhythm management products with St. Jude Medical, group purchasing organization Novation has now added Biotronik as a partner. The two agreements come more than a month after  Medtronic ended a similar deal Novation.

"Biotronik will invest in opportunities and we are enthusiastic about this newly forged relationship with Novation and the member hospitals it serves," Dan Schlewitz, executive VP of sales for Biotronik, says in a statement. "This agreement acknowledges our commitment to continued growth in the U.S. as well as our excellent reputation for product quality and reliability."

This agreement will allow the members of VHA Inc., the University HealthSystem Consortium and Provista to use the following Biotronik products: implantable cardioverter defibrillators, heart failure devices, pacemakers, the home monitoring system and service center, leads and lead delivery systems and CRM accessories.

Back in February, Medtronic informed Novation that it was cancelling five contracts for cardiovascular and orthopedic products valued at $2 billion. The devicemaker said it wanted to negotiate device prices directly with hospitals, rather than through a national GPO contract. The move could save Medtronic up to $60 million this year in administration charges, according to The New York Times.

Medtronic spokesman Chris Garland told MassDevice the devicemaker's recent move to combine its cardiac and vascular groups' sales forces is part of its move to deal directly with hospital purchasing administrators.

Biotronik recently made news after articles appearing in the New York Times questioned payments the company made to Nevada doctors. After these reports appeared, state officials began looking into whether the payments were inappropriate. The company has denied doing anything unethical or illegal.

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