PALO ALTO, Calif.--(BW HealthWire)--March 15, 2001--Varian Medical Systems, Inc. (NYSE:VAR) and HealthTrust Purchasing Group (HPG) today announced they have renewed -- and expanded -- a three year vendor agreement to supply HealthTrust members with advanced systems for treating cancer with radiotherapy through the year 2003. The contract covers Varian's state-of-the-art equipment and software for SmartBeam(TM) IMRT (intensity modulated radiation therapy), a new form of highly precise radiation therapy that targets cancer cells with high doses while minimizing the exposure of nearby healthy tissue.
The new contract extends and expands upon Varian's existing arrangement with HealthTrust Purchasing Group. "We will continue to be HPG's sole source supplier for medical linear accelerators, and now we are adding our line of Ximatron(R) treatment simulators," said Timothy Guertin, president of Varian Medical Systems' oncology business. "Together with new IMRT reimbursement codes that were approved this year by the Health Care Financing Administration, this supply agreement will now make it more feasible for HPG member hospitals to acquire this life saving technology."
Under the agreement, HealthTrust Purchasing Group will provide its participating members access to Varian Medical Systems' full range of radiation therapy products including the Clinac(R) EX Platinum linear accelerator and Ximatron(R) treatment simulators, as well as multi-leaf collimators and other accessories for SmartBeam IMRT. Varian Medical Systems' products also include software for planning treatment and managing patient information, brachytherapy systems, and medical imaging systems.
HealthTrust Purchasing Group, L.P. (HPG), based in Nashville, Tenn., is one of the nation's leading healthcare group purchasing organizations (GPO) with a current membership in excess of 600 facilities and contracting volume totaling more than $4.0 billion. HPG is committed to providing its customers with the highest quality, cost-effective supplies and services for their patients, physicians, nurses and other clinicians. HPG's membership includes hospitals, surgery centers, clinics, physicians, integrated delivery networks, and affiliate members.
Varian Medical Systems, Inc. (NYSE:VAR) of Palo Alto, California, is the world's leading manufacturer of integrated cancer therapy systems as well as X-ray tubes and flat-panel sensors for imaging in medical, scientific, and industrial applications. Varian Medical Systems employs approximately 2,400 people and reported sales of $690 million in its most recent fiscal year ended September 29, 2000. For more information, visit www.varian.com.
This press release contains certain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which provides a "safe harbor" for these types of statements. These forward-looking statements are subject to risks and uncertainties that could cause the actual results of Varian Medical Systems, Inc. to differ materially from management's current expectations. These risks and uncertainties include, without limitation, healthcare reimbursement methodology as determined by the federal government; product demand and market acceptance risks; new product development and commercialization; the impact of managed care initiatives in the U.S. on capital expenditures and resulting pressures on medical equipment purchases; and other risks detailed in Varian Medical Systems, Inc. filings with the Securities and Exchange Commission. Varian Medical Systems, Inc. assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.