Global Healthcare Exchange, acquire, Neoforma, supply chain, efficieny

Global Healthcare Exchange to acquire Neoforma

12 Oct 2005 | (News)

Global Healthcare Exchange, LLC, and Neoforma, Inc. have entered into a definitive merger agreement for GHX to acquire Neoforma. The combined company will offer cost-effective supply chain products and services to improve efficiencies for both healthcare providers and suppliers.
 
GHX provides an open and neutral electronic trading exchange, along with complementary products and services, through which buyers and sellers can collaborate to improve efficiencies in the healthcare supply chain. Neoforma provides supply chain management solutions for the healthcare industry, through a unique combination of technology, information and services. The combination of the two companies is expected to increase efficiency in the healthcare supply chain by increasing process automation, improving data accuracy and providing business intelligence that can improve decision-making and planning. As a result of the merger, more healthcare supply chain participants will be able to conduct business with one another electronically, which can generate significant savings for both buyers and sellers.

"The merger of GHX and Neoforma provides the opportunity to continue improving efficiencies and lowering costs in the healthcare supply chain," says Michael Mahoney, chief executive officer of GHX. "GHX will continue to build and enhance products and services that help all members of the healthcare supply chain improve and streamline their business processes. By combining these two organizations, GHX can offer new services to a broader range of both buyer and seller participants, and enable greater efficiencies across the supply chain."

(Article continues below)

Bob Zollars, chairman and chief executive officer of Neoforma, states, "Earlier this year, Neoforma committed to evaluating our strategic alternatives in order to provide greater value to our stockholders. After a lengthy and thorough evaluation process, Neoforma's management and our board of directors concluded that this outcome is in the best interests of our minority stockholders. Additionally, this combination with GHX will provide our customers with more cost-effective solutions at an accelerated pace."

Separately, GHX and VHA, UHC and Novation have entered into a new outsourcing agreement, under which GHX will provide supply chain management products and services for VHA and UHC members. Novation is the contracting arm of VHA and UHC. The new outsourcing agreement will become effective upon the close of the merger between GHX and Neoforma.

Related Content: