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2014
Baptist Health and Norton Healthcare join forces on pharmaceutical distribution contract

Ohio-based Cardinal Health selected as vendor

LOUISVILLE, KY. (July 24, 2014): For the second time this year, Baptist Health and Norton Healthcare have formed a joint purchasing arrangement for the acquisition and distribution of supplies.

The two health systems awarded a contract to Cardinal Health of Dublin, Ohio, for pharmaceutical distribution services. Three other companies, including each health system’s incumbent distributor, had submitted bids. The five-year contract takes effect on September 3 for Norton Healthcare and December 1 for Baptist Health.

The agreement with Cardinal Health is similar to one Baptist and Norton reached in January with Medline Industries Inc., of Mundelein, Ill., for medical and surgical supplies, implants and devices. The agreements are intended to increase efficiency and flexibility for both health systems.

Although the parties to the agreement have declined to disclose the total value of the contract, the two hospital systems said that, compared to their current contracts, they expect a combined savings of more than $15 million over the life of the five-year contract with Cardinal Health.

“It’s a new day in healthcare,” said Michael K. Reeves, system executive of Supply Chain Services for Baptist Health. “Providers are under intense pressure to hold down costs because of the Affordable Care Act and other reforms, and doing business the way we’ve always done it simply won’t do. Partnerships like these provide economies of scale and allow us to be more efficient in our delivery of quality care.”

"This is the future of healthcare in this country,” said Paul Allen, associate vice president, Pharmacy Administration, Norton Healthcare. “We’ve gone beyond thinking outside of the box. Arrangements like this are proof that there is no box when it comes to discovering creative ways of reducing the cost of care while maintaining patient safety and quality standards.”

"We're pleased to serve the pharmaceutical distribution needs of Baptist Health and Norton Healthcare," said Jon Giacomin, president of Cardinal Health's U.S. Pharmaceutical Distribution business. “We’re looking forward to working with both health systems to improve the cost-effectiveness of the health care services they deliver to patients.”

About Baptist Health

Kentucky's Baptist Health (formerly Baptist Healthcare System), headquartered in Louisville, owns seven acute-care hospitals with more than 2,100 licensed beds in Corbin, La Grange, Lexington, Louisville, Madisonville, Paducah and Richmond. Baptist Health manages Hardin Memorial Hospital in Elizabethtown and Russell County Hospital in Russell Springs.

For 90 years, Baptist Health has stood for high-quality care, patient satisfaction and nursing excellence, owning two of the four adult Magnet-designated hospitals in Kentucky. Baptist has grown its physician network to more than 450 employed physicians and more than 1,600 independent physicians. In addition to hospitals, Baptist Health includes urgent care and retail-based clinics, home health care, outpatient diagnostic and surgery centers, occupational medicine and physical therapy clinics, fitness centers and a health maintenance organization (HMO). More information is available at www.bhsi.com.

About Norton Healthcare

For 128 years, Norton Healthcare’s faith heritage has guided its mission to provide quality health care to all those it serves. Today, Norton Healthcare is a leader in serving adult and pediatric patients throughout Greater Louisville, Southern Indiana, the commonwealth of Kentucky and beyond. The hospital and health care system is the third largest private employer in the Louisville area, providing care at more than 140 locations throughout Greater Louisville and Southern Indiana. The Louisville-based not-for-profit system includes five Louisville hospitals with 1,837 licensed beds; seven outpatient centers; 12 Norton Immediate Care Centers; nearly 12,000 employees; some 654 employed medical providers; and approximately 2,000 total physicians on its medical staff. In 2013 Norton Healthcare was named by Healthiest Employers as the seventh healthiest place to work in the country. More information about Norton Healthcare is available at NortonHealthcare.com.

About Cardinal Health

Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $101 billion health care services company that improves the cost-effectiveness of health care. As the business behind health care, Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers, clinical laboratories and physician offices focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health is an essential link in the health care supply chain, providing pharmaceuticals and medical products and services to more than 100,000 locations each day and is also the industry-leading direct-to-home medical supplies distributor. The company is a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company operates the nation's largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #19 on the Fortune 500, Cardinal Health employs 33,000 people worldwide. More information about the company may be found at www.cardinalhealth.com and @CardinalHealth on Twitter.

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