VHA, Tidewater GPO Sign Strategic Sourcing Agreement

John Commins, for HealthLeaders Media , March 9, 2010

Healthcare network VHA Inc. has signed a five-year strategic agreement with Omnicare Inc. subsidiary Tidewater GPO, a group purchasing organization for long-term care providers.

The agreement gives Covington, KY-based Tidewater's approximately 4,000 members access to VHA's non-acute care portfolio for food and food distribution services with U.S. Foodservice.

"With the power of VHA's key contracts, Tidewater enhances its ability to bring significant value to its membership in a highly competitive and reimbursement sensitive marketplace, while remaining independent and committed exclusively to serving our senior care providers," said Tom Ludeke, president of Tidewater GPO, in a media release.

The agreement expands Irving, TX-based VHA's reach into the non-acute market of non-hospital healthcare providers, such as surgery centers, physician practices, home health agencies, and cancer centers.

VHA now serves more than 1,400 nonprofit hospitals and more than 28,000 non-acute care organizations nationwide.

VHA's contracting company, Novation, manages more than $35 billion in contract purchasing annually, including purchases through its agreement with U.S. Foodservice.

"Tidewater has a deep understanding of the long-term care market, which is growing rapidly as the baby boom generation approaches retirement age," said Amy Anthony, senior vice president of Supply Chain Programs for VHA, in a media release.

John Commins is a senior editor with HealthLeaders Media.

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