St. Jude signs contract with GPO Novation

St. Jude Medical has inked a 30-month agreement for cardiac rhythm management products with group purchasing organization Novation. The agreement features a complete product offering, locally negotiated pricing and market share growth rebates. The move comes a little more than a month after rival Medtronic ended a similar deal Novation.

"We are looking forward to St. Jude Medical's pipeline of new technologies, many which we expect to soon be available in the United States, such as ShockGuard for reduction of inappropriate therapies, quadripolar CRT-D systems, and technologies focused on hemodynamic monitoring for heart failure patient management," says Pete Allen, senior vice president, sourcing operations at Novation.

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

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