Medtronic has cancelled five contracts with healthcare supply contracting company Novation, which is owned by VHA and the University HealthSystem Consortium, according to a news release.
The contracts with Novation cover cardiovascular and orthopedic products. Medtronic stated in a letter to Novation that the company wanted to manage their business relationships with hospitals locally, rather than through a national GPO contract.
In response to Medtronic's action, 16 non-profit hospitals and academic medical centers sent an open letter to the chairman and CEO of Medtronic, stating their "extreme disappointment" with the device company "during this time of unprecedented cost pressures."
Read the news release about Medtronic.
Read other coverage about Medtronic:
- Medtronic Reports 3Q Revenue of $3.96B, 3% Increase
- Medtronic's CEO to Retire Next April
- Medtronic Launches KYPHON Express Curette
The contracts with Novation cover cardiovascular and orthopedic products. Medtronic stated in a letter to Novation that the company wanted to manage their business relationships with hospitals locally, rather than through a national GPO contract.
In response to Medtronic's action, 16 non-profit hospitals and academic medical centers sent an open letter to the chairman and CEO of Medtronic, stating their "extreme disappointment" with the device company "during this time of unprecedented cost pressures."
Read the news release about Medtronic.
Read other coverage about Medtronic:
- Medtronic Reports 3Q Revenue of $3.96B, 3% Increase
- Medtronic's CEO to Retire Next April
- Medtronic Launches KYPHON Express Curette