Neoforma (NASDAQ:NEOF)
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Neoforma Accelerates Connectivity for Hospitals and Suppliers
Customers Significantly Increase the Number of Connections Implemented
SAN JOSE, Calif., Nov. 15 /PRNewswire-FirstCall/ -- Neoforma, Inc.
(NASDAQ:NEOF), a leading provider of supply chain management solutions for the
healthcare industry, continues to build momentum around its connectivity
offering for hospitals and suppliers. Utilizing a new connectivity process
launched in July 2004, Neoforma implemented 715 connections in the third
quarter of 2004, more than double its average quarterly connection rate in
2003. Neoforma's innovative new connectivity process is designed to help
suppliers and hospitals easily integrate and automate many of their supply
chain business practices and accelerate the delivery of cost-savings and value
from their use of Neoforma's solutions.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030226/NEOFORMALOGO )
By increasing the number of connections between trading partners, Neoforma
streamlines purchasing activity for its hospital and supplier customers. A
connection is an electronic channel between the enterprise resource planning
system (ERP) or materials management information system (MMIS) of a hospital or
integrated delivery network and a supplier's order processing system. One
Neoforma connection can represent multiple hospitals and, potentially, multiple
departments within each hospital.
"Hospitals and suppliers alike are looking for solutions that help accelerate
the automation of their day-to-day business processes," says Dan Eckert,
president and chief operating officer of Neoforma. "Neoforma's innovative
connectivity process addresses this need directly by enabling our customers to
more rapidly implement electronic trading relationships."
Neoforma provides supply chain management solutions for the healthcare
industry, including building and supporting solutions for
Marketplace@Novation(R), the online healthcare supply exchange offered by
Novation, the supply company of VHA Inc. and University HealthSystem Consortium
(UHC). As Novation's strategic technology partner, Neoforma offers
connectivity services to VHA and UHC members that are transacting through
Marketplace@Novation.
VHA members such as Memorial Medical Center in Springfield, Ill., and St.
Peter's Hospital in Helena, Mont., are among the numerous VHA and UHC hospitals
that have benefited from Neoforma's streamlined connectivity process and are
seeing immediate results by rapidly and easily increasing their number of
connections.
For example, Kevin Voigt, system director of materials management at Memorial
Medical Center comments, "We were able to quickly increase the number of
suppliers that we are connected with from ten to more than 50 by participating
in the new connectivity process. By increasing our number of connections, we
have better information that results in improved data tracking and reporting
capabilities. This enables us to resolve price and order discrepancies,
resulting in fewer accounts payable and invoice issues."
St. Peter's Hospital has also been able to increase its number of connections
dramatically using Neoforma's new connectivity process, from one supplier
connection in July 2004 to 23 connections by the end of October 2004. St.
Peter's Hospital expects to have 30 connections by the end of November 2004.
Through Neoforma's connectivity process, participating suppliers, including St.
Jude Medical, Daig Division, Inc. and Edwards Lifesciences Corporation, are
able to immediately access the full benefits of Neoforma Order Management
Solution(TM) (OMS). Benefits of Neoforma OMS include rapid connectivity to new
trading partners, connectivity maintenance services, automated order processing
and Web-based reporting tools to enable more informed decision making.
The new connectivity process provides suppliers with a compelling option for
connectivity that takes time and costs out of their supply chain. According to
Mike Zagger, vice president of corporate accounts for St. Jude, "Due to
Neoforma's new accelerated connectivity process, St. Jude Medical's Daig
business saw a significant increase over its quarterly connection average from
two connections in the second quarter to 14 connections in the third quarter.
In addition, in the fourth quarter, we expect to continue to build on our
success and increase the number of hospitals with which we are communicating
electronically, which benefits both St. Jude and our VHA and UHC hospital
customers."
About Neoforma
Neoforma is a leading supply chain management solutions provider for the
healthcare industry. Through a unique combination of technology, information
and services, Neoforma provides innovative solutions to over 1,500 hospitals
and suppliers, supporting more than $10 billion in annualized transaction
volume. By bringing together contract information and order data, Neoforma's
integrated solution set delivers a comprehensive view of an organization's
supply chain, driving significant cost savings and better decision-making for
both hospitals and suppliers. For more information, go to
http://www.neoforma.com/ .
This news release contains forward-looking information within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking statements
include statements related to Neoforma's innovative new connectivity process
and how it is designed to help suppliers and hospitals easily integrate and
automate many of their supply chain business practices and accelerate the
delivery of cost-savings and value from their use of Neoforma's solutions, the
benefits of increasing the number of connections between trading partners, the
enhanced benefits to Neoforma hospital customers from using Neoforma's new
connectivity process and using Neoforma OMS, as well as the expected increase
in connections that Neoforma expects using its new process. There are a number
of risks that could cause actual results to differ materially from those
anticipated by these forward-looking statements. These risks include the risk
that customers may not reap the benefits anticipated from the use of the new
connectivity process and Neoforma OMS, as well as other operational challenges
that Neoforma has faced and may continue to face in implementing its
connectivity plan. These risks and other risks are described in Neoforma's
periodic reports filed with the SEC, including its Quarterly Report on Form
10-Q for the quarter ended September 30, 2004. These statements are current as
of the date of this release and Neoforma assumes no obligation to update the
forward-looking information contained in this news release.
Neoforma is a trademark of Neoforma, Inc. Other Neoforma logos, product names
and service names are also trademarks of Neoforma, Inc., which may be
registered in other countries. Other product and brand names are trademarks of
their respective owners.
http://www.newscom.com/cgi-bin/prnh/20030226/NEOFORMALOGO
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DATASOURCE: Neoforma
CONTACT: Media - Jen Reidy, +1-415-891-8300, ,
Investors - Amanda Mogin, +1-408-468-4251, , both for
Neoforma
Web site: http://www.neoforma.com/