DALLAS--July 24, 2006--Broadlane today announced that New Hanover Regional Medical Center, a large and respected healthcare system serving southeastern North Carolina and northeastern South Carolina, has selected Broadlane to provide group purchasing, technology and custom and local contracting services under an exclusive three-year agreement. Terms were not disclosed.
The group purchasing services to be provided by Broadlane will include sourcing and contracting for consumable supplies and equipment, pharmaceuticals and purchased services. New Hanover Regional Medical Center will gain access to Broadlane's existing industry-leading portfolio of contracts and, in addition, Broadlane will assist New Hanover Regional Medical Center in developing strategic sourcing initiatives in areas of high physician preference.
Broadlane will also provide New Hanover Regional Medical Center with technology services that include use of Broadlane's e-commerce exchange, BroadLink(TM), to connect to its suppliers. Broadlane is the only group purchasing entity in healthcare with its own integrated e-commerce exchange. Last year BroadLink recorded nearly $2.6 billion in client purchase volume. Reports generated by BroadLink will give New Hanover Regional Medical Center deep new insights into its procurement activities.
New Hanover Regional Medical Center, which is headquartered in Wilmington, N.C., selected Broadlane after carefully examining competing service providers during an extensive due diligence process. The agreement with Broadlane will become effective on Oct. 1 when New Hanover Regional Medical Center's current group purchasing relationship expires. New Hanover Regional Medical Center has approximately $125 million in annual supply spend.
"In addition to our own due diligence, we also brought in one of the leading consulting firms to further validate our analysis and it confirmed that Broadlane would provide the best pricing and value for New Hanover Regional Medical Center," said Jack Barto, the health system's chief executive officer. "Beyond the savings associated with utilizing Broadlane's national GPO portfolio, we also anticipate that Broadlane will help us achieve greater levels of standardization concerning product usage, which we regard as a vital component of our supply chain initiatives. No other GPO that we looked at offered the level of contract implementation support that Broadlane provides."
Said David Ricker, president and chief operating officer of Broadlane: "New Hanover Regional Medical Center's selection of Broadlane is further validation of the differentiation we have as a provider of services to hospitals. As its leadership recognized, no other company offers such a substantial price advantage in its contract portfolio, has the ability to help hospitals achieve such high levels of contract compliance, offers such advanced technology services and data management capabilities, and makes the kind of investments needed to service its clients -- both from a rapid implementation perspective in the beginning of the relationship but also in ongoing account management."
About Broadlane
Through a comprehensive set of services focused on contracting, purchasing, clinical and pharmacy cost management, labor, capital equipment and information management, Broadlane helps providers go further to reduce costs and improve financial performance.
Broadlane is known for superior and verifiable cost savings, deep clinical and operational expertise and technology that enables more effective spend management. Together, these capabilities help providers rapidly achieve industry-best procurement practices.
Broadlane serves thousands of acute care hospitals, sub-acute care facilities and physician practices across the country. The company was named in both 2004 and 2005 to Inc. magazine's list of the fastest-growing private companies in the United States. Broadlane is headquartered in Dallas with additional offices in California, New York and Ohio. For more information, visit www.broadlane.com.
