Premier makes Philips, ADAC preferred vendors

August 30, 2000

In what may be the first of several collaborative efforts, Philips Medical Systems and ADAC Laboratories have signed a three-year preferred vendor contract with Charlotte, NC-based Premier, one of the nation's largest healthcare alliances, to

In what may be the first of several collaborative efforts, Philips Medical Systems and ADAC Laboratories have signed a three-year preferred vendor contract with Charlotte, NC-based Premier, one of the nation's largest healthcare alliances, to offer complementary lines of diagnostic imaging systems to Premier's 1700 member hospitals.

Under the agreement, Philips will supply cardiac and vascular x-ray systems, radiography/fluoroscopy systems, ATL ultrasound equipment, surgical C-arms, and the company's Inturis image and information management systems to Premier members. ADAC will offer its PET system and its line of nuclear medicine imaging systems.

Although Philips and ADAC will still have to actively sell their products, Premier members will have a strong incentive to buy from the two companies.

"If hospitals work through the contracts we've established, they will get first-rate products as well as savings," said Ken Inchausti, senior director of public relations at Premier.

Neither company would say what sales or revenue figures they anticipated under the contract.

"It's just too complicated to make any real projections under a three-year deal like this," said Paul Berger, a spokesperson for Philips.

"We're unable to project sales and revenue, because there are too many companies involved," said Linda Snyder, director of corporate communications for ADAC. "Hospitals are not required to buy only from us, but they do get preferred pricing. Business will come to us, but the hospitals are free to look elsewhere."

ADAC launched a joint venture with imaging services provider American Diagnostic Medicine (ADM) a year ago (SCAN, 6/23/99). The program, called FirstNuclear, provides hospitals, clinics, and medical practices with the equipment, staff, and supplies needed to start or upgrade a PET or SPECT program. But Snyder said FirstNuclear would play no part in the Premier relationship.