Child Health Corporation of America Names Cardinal Health its Exclusive Provider for Medical and Surgical Distribution

McGAW PARK, Ill. -- The nation's only business alliance of children's hospitals has named Cardinal Health, Inc. as the leading provider of products and services supporting the healthcare industry, its exclusive distributor of medical and surgical supplies and services, Cardinal Health announced today.

Under the three-year agreement, Cardinal Health will deliver its full range of more than 300,000 medical products to Child Health Corporation of America (CHCA). CHCA, an alliance of 41 of North America's leading children's hospitals, represents more than 20,000 physicians and 98,000 employees. The agreement runs through March 2007. Additional terms of the agreement were not disclosed.

"The breadth of Cardinal Health's products and services, its information and automation capabilities and unique approach to helping us find opportunities for savings were critical factors in this decision," said Ed Kuklenski, CHCA senior vice president. "Cardinal Health has developed a valuable suite of services such as Continuous Pricing Accuracy and advanced reporting tools that will help children's hospitals improve efficiency in ordering and managing millions of dollars in inventory."

With Continuous Pricing Accuracy, Cardinal Health reconciles the hundreds of daily price changes that occur between thousands of manufacturers and the hospitals that purchase their products so that every invoice is accurate.

CHCA members also will have access to Cardinal Health's "entelligence" service, a proprietary Internet-based offering that allows healthcare executives to retrieve information ranging from a full year of searchable purchasing history to current trends in product demand. The service helps managers standardize buying decisions, plan for annual budgets and manage inventory more effectively and efficiently.

"We're privileged to play a role in supporting the healthcare providers that care for many of our nation's children," said Tom Slagle, president of distribution at Cardinal Health's medical products and services group. "These are among the best-run health facilities in the world and we are honored to be a part of their vital work."

Many CHCA hospitals already rely on Cardinal Health's ValueLink service, a just-in-time distribution program that eliminates the need for hospitals to maintain and manage large amounts of inventory. With ValueLink, Cardinal Health delivers ready-to-use quantities of supplies as needed -- often several times a day -- directly to the floors and departments where they are being used.

A group affiliate of Premier, CHCA is headquartered in Overland Park, Kan. It is a business alliance of 41 of North America's leading children's hospitals that provides a range of products and services designed to reduce costs, increase revenue and enhance the competitive position of children's hospitals. Programs and services include group purchasing and supply chain management, pediatric data management, performance improvement and patient safety initiatives, web-based training programs and strategic business services.

Cardinal Health, Inc. is a leading provider of products and services supporting the healthcare industry. Cardinal Health develops, manufactures, packages and markets products for patient care; develops drug-delivery technologies; distributes pharmaceuticals and medical, surgical and laboratory supplies; and offers consulting and other services that improve quality and efficiency in health care. Headquartered in Dublin, Ohio, Cardinal Health employs more than 50,000 people on five continents and produces annual revenues of more than $50 billion. Cardinal Health is ranked No. 17 on the Fortune 500 list and is named one of the best U.S. companies by Forbes magazine for 2004.

Source: Cardinal Health