Baxter Healthcare Corp. and Bard Urological Division – signs new contracts; C.R. Bard Inc.’s Bard Urological
Baxter Healthcare Corp., Deerfield, Ill., and Bard Urological Division, Covington, Ga., signed new three-year contracts, effective Jan. 1, with Purchase Connection, Los Angeles, for custom sterile procedure trays and for urological products.
Potential purchases for the Baxter agreement are estimated at about $16 million annually in the first year of the contract and $25 million to $30 annually by the end of the agreement, according to Michael Wagener, vice president of the medical/surgical program.
Purchase Connection had previously contracts with Medical Device Concepts and Sterile Concepts and decided to go solesource with Baxter to increase participation.
“Participation was reasonable but not outstanding,” Wagener said. Baxter also is the supplier of choice for the majority of its members, he added.
Members should achieve price savings, but the amount is difficult to figure because there has been little consistency in the volume or pack configuration of custom sterile trays that were under contract, he said.
Wagener anticipates that half of Purchase Connection’s 350 hospitals are expected to participate in the contract in its first year and 70% or more should participate by the end of the agreement.
The Bard urological contract replaces a previous contract with Kendall Healthcare Products Co., Mansfield, Mass. Purchase Connection now has a dual-source agreement for urological products with Bard and Baxter,
“We had fairly good participation under the Kendall contract,” Wagener said.” It will be a little bit of a struggle to get members converted to Bard.”
He expects 85% of Purchase Connection’s members to participate in either the Bard or Baxter agreement in the first year of the Bard contract. About 35% of the alliance’s hospitals are now using the Baxter contract, 25% are using the Kendall contract and the remainder are using Bard products through individual contracts.
Annual purchases from the Bard and Baxter contracts are estimated at $7 million to $8 million annually.
The alliance selected Bard based on three factors: Bard’s market share nationally and within Purchase Connection; member request for a Bard contract; and Bard is a supplier of a wide variety of specialty urological products, such as catheters.
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