Press Room
Press Release
CONSORTA JOINS HEALTHTRUST AS EQUITY OWNER
Schaumburg, Ill., January 4, 2007 - Consorta,
Inc. and HealthTrust Purchasing Group, LP, two of the nation's
leading healthcare group purchasing organizations, today announced a
combination that will bring significant added value to their member
hospitals and patients for years to come. The two organizations have
signed a letter of intent to establish Consorta as HealthTrust's
sixth equity owner.
"Consorta had a record-breaking year in 2006 and we are excited to
start 2007 announcing plans to partner with HealthTrust Purchasing
Group," said John Strong, President and CEO of Consorta. "We
conducted thorough due diligence to align with the right partner and
it was clear that HealthTrust would be the best fit with our
mission, culture and patient focus moving forward. The economic
benefit is very compelling, and we are excited about combining our
resources to offer increased cost savings and value to our members,
now and well into the future."
The combination, expected to close by February 28, 2007, will create
one of the country's largest group purchasing organizations, with
more than $13 billion in combined volume. Consorta expects the
transaction to yield current and future cost savings of $535 million
for shareholders and members.
"Consorta brings a very impressive track record to our
organization," said Jim Fitzgerald, President and CEO of
HealthTrust. "We believe this is a unique combination, in that both
organizations have become industry leaders by focusing on a
patient-first philosophy in product selection. We are highly
confident that our respective members' commitments will yield a
substantial, sustainable price advantage moving forward."
Following the transaction, Consorta will remain an independent
organization, serving as its shareholders voice on the HealthTrust
Board of Advisors. Consorta shareholders and members will become
members of HealthTrust. Consorta will help recruit new HealthTrust
members, provide educational and analytical programs and manage
member compliance. Also, Consorta shareholders will serve on
HealthTrust clinical advisory boards and other boards to guide
product selection.
"This partnership holds great promise for each of the Consorta
shareholders, and I believe the combination will yield tremendous
benefit in shared best practices, in addition to the economic
value." said Lou Fierens, Consorta Chairman and SVP of Supply Chain
Management and Capital Projects at Trinity Health.
Once the combination is finalized, Consorta expects to reduce its
Schaumburg headquarters over a period of 18 months. Consorta's Board
of Directors and senior management is expected to remain in their
current positions in support of their shareholders.
Together, the parties will continue their work as national leaders
in the movement for greater industry accountability. The two
organizations joined in 2005, with other industry leaders, to form
the Healthcare Group Purchasing Industry Initiative, an organization
created to monitor and promote best ethical and business practices
within the industry. The Initiative now boasts nine members and
continues to function as a resource for best practices in compliance
and transparency.
About Consorta, Inc.
Consorta, based in suburban Chicago, is a leading
healthcare resource management and group purchasing organization
whose shareholders are faith-based or non-profit health systems.
Consorta's 12 shareholder healthcare systems are among the leading
integrators of non-profit healthcare in America. Consorta's
membership now encompasses more than 3,280 care sites, including
more than 530 acute care and over 250 extended care facilities
throughout the country. Consorta provides contract purchasing power
for some of the nation's leading non-profit organizations, including
America's Blood Centers, the American Red Cross, the American Heart
Association, America's Promise, Camp Fire USA, Catholic Charities
USA, Girls Incorporated, Lutheran Services in America, National
Council on Aging, National Mental Health Association, Salvation
Army, Save the Children Foundation, United Way of America and YWCA
USA. Consorta, Inc. is located at 1475 E. Woodfield Road, Suite 400,
Schaumburg, Illinois 60173. Phone (847) 592-7800, Fax: (847)
592-7801. Web site:
www.consorta.com.
About HealthTrust Purchasing Group, LP
HealthTrust Purchasing Group, headquartered in Brentwood, Tennessee,
is a group purchasing organization that supports over 850
not-for-profit and for-profit acute care hospitals, and 1200
ambulatory surgery centers, alternate care sites, and physician
practices. With an annual purchasing volume by its members of more
than $8 billion, HealthTrust is committed to obtaining the best
price for clinically-recommended products, ensuring their timely
delivery and continuously evaluating and improving our services to
the patients, physicians and clinicians we serve. HealthTrust is
located at 155 Franklin Road, Suite 400, Brentwood, TN 37027
Website:
www.healthtrustpg.com.
Press Contact:
Debra Lynn Ross
dross@consorta.com
847-592-7864