Press Room
Press Release
CONSORTA, INC. FINALIZES AGREEMENT TO BECOME SIXTH EQUITY
OWNER IN HEALTHTRUST PURCHASING GROUP
Schaumburg, Ill., April 18, 2007 - Consorta,
Inc. and HealthTrust Purchasing Group, LP, two of the nation's
leading healthcare group purchasing organizations, today finalized
the agreement that establishes Consorta as the sixth equity owner in
HealthTrust.
The combination of the two companies creates the nation's fourth
largest group purchasing organization (GPO), with more than $13
billion in combined volume. "As an equity owner of HealthTrust, we
will be able to offer members the best overall contract value and
return among all GPOs," explained John W. Strong, Consorta's
president and chief executive officer.
According to Strong, during the first five years of the partnership,
Consorta forecasts that the combination will provide shareholders
and members with $535 million in cost savings, via price reductions
and broader coverage afforded by HealthTrust's portfolio. All 12
Consorta shareholders are participating in the combination, along
with Consorta affiliates.
"We are very pleased to have these outstanding Consorta shareholders
and affiliates as new members of HealthTrust," said Jim Fitzgerald,
president of HealthTrust. "While it validates our unique model and
value-proposition, I'm even more excited about the potential to
strengthen our competitive position. We'll refresh all of our
contracts over the next 18 months, delivering added value to all
HealthTrust members."
HealthTrust will be responsible for all GPO Operations, including
contracting. Consorta will remain an independent organization,
serving as its shareholders' voice on the HealthTrust Board of
Advisors, and on HealthTrust clinical advisory boards to guide
product selection. Consorta will also provide educational and
analytical programs and manage member compliance for its
shareholders.
"This combination holds great promise for each Consorta shareholder,
and I believe it will yield tremendous benefit in shared best
practices, in addition to the economic value," said Lou Fierens,
Consorta Board Chair and senior vice president, Supply Chain
Management and Capital Projects at Trinity Health.
About Consorta
Consorta, based in suburban Chicago, is a leading healthcare
resource management and group purchasing organization (GPO) whose
shareholders are faith-based or non-profit health systems.
Consorta's 11 shareholder healthcare systems represent 60 percent of
all Catholic hospitals in the United States, and are among the
leading integrators of non-profit healthcare in America. Consorta's
membership now encompasses more than 3,200 care sites representing
78,000 patient care beds. This includes more than 450 acute and over
200 extended care facilities throughout the country. Though it’s
Advantage Program, Consorta provides contract purchasing power for
some of the nation's leading non-profit organizations. As an equity
owner in HealthTrust Purchasing Group, the nations third largest GPO
with over 1,300 not-for-profit and for-profit acute care hospitals
well as over 3,000 ambulatory surgery centers, alternate care sites
and physician practices, Consorta provides increasing levels of
supply chain value to our shareholders and members.
Press Contact:
Kevin Conway
kconway@consorta.com
847-592-7979