MedAssets acquisition creates one of nation's largest group purchasing organizations

MedAssets Inc. recently announced that it successfully acquired Health Services Corporation of America (HSCA), a major national group purchasing organization (GPO) with headquarters in Cape Girardeau, Missouri and additional offices in St. Louis, Missouri.

When combined with MedAssets' existing GPO, InSource Health Services, the acquisition establishes MedAssets' GPO holdings as one of the largest in the country. HSCA brings more than 2000 members and 32 years of service to the healthcare industry to this new relationship. The combined company will have purchasing power of over $4.5 billion in gross throughput and will serve over 13,000 healthcare providers nationwide.

"This merger enhances MedAssets' mission of creating a full-service procurement business for the healthcare industry that supplies new cost-saving opportunities for providers," said John Bardis, President and CEO of MedAssets, Inc. "The acquisition is a major step towards establishing our business model as the most effective and efficient, bringing value to all constituents - both suppliers and providers - from the largest to the smallest."

"The combination of HSCA, InSource, and MedAssets is very complementary," said Earl Norman, Chairman and CEO of HSCA, who will join the MedAssets Board of Directors. "The membership of InSource is primarily alternate site healthcare providers, while HSCA's members are primarily hospital-based. This merger will create a strong, well-balanced company that combines the best practices and strategies of both entities. We are particularly excited about the combined capabilities of the MedAssets iGPO contract engine and our own CDQuick electronic catalogs."

The combined company will use the Internet, as well as traditional media, to promote its suppliers' products and services while, according to Mr. Bardis, "creating a marriage between web-based technology and traditional brick-and-mortar businesses in order to provide a full suite of products and services to all of our members, without burdening the supply chain with any additional costs."

Another beneficiary of the companies' combined resources will be the Health Careers Foundation. "The Health Careers Foundation, founded and strongly supported by Earl Norman, will remain an important focus of the combined company," John Bardis said. This not for profit, national organization provides financial assistance and support to single parents seeking nursing and other clinical careers within the healthcare industry. "Finding, and keeping, well-qualified clinicians has rapidly become one of the most critical issues facing the healthcare industry. The Health Careers Foundation has assisted over 3000 individuals and is well-positioned to play an important role in helping to solve this problem," said Mr. Bardis.

About MedAssets

MedAssets combines established businesses and with advanced technologies and forward-thinking practices and strategies to help healthcare providers manage their procurement of supplies and capital equipment more effectively. MedAssets services the entire continuum of healthcare providers, from hospitals and integrated delivery networks to the large, diverse and underserved spectrum of alternate site providers, such as outpatient surgery and rehabilitation centers, clinics, long-term care facilities and physician practice groups. Its extensive clientele of healthcare suppliers include manufacturers and distributors of medical/surgical, pharmaceutical, dietary and laboratory supplies, as well as capital equipment.

Prior to the acquisition of HSCA, MedAssets serviced more than 11,300 customers and managed more than $2 billion of purchases. MedAssets also owns and operates MedAssets Exchange/ReMedPar, the nation's largest independent, multi-vendor refurbisher and parts distributor for diagnostic imaging equipment.

About Health Services Corporation of America

HSCA is a national group purchasing organization with more than 30 years of experience in improving purchasing in healthcare. The company is focused on reducing costs in the supply distribution chain. The company strives to provide programs and services known for their quality and value, as well as to be recognized for integrity, commitment and service. With its technology, expertise and relationship channels in place and integrating systems to create a conduit for information, HSCA helps members and vendors do business efficiently and thrive in both the traditional and e-business worlds. Among the services available through HSCA are consulting, materials management solutions, strategic information, laboratory testing, as well as pharmacy, food and nutrition programs.

Source: MedAssets Inc.

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