InSource Health Services and Varian Medical Systems Announce Supply Agreement for Cancer Treatment Systems | Varian

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InSource Health Services and Varian Medical Systems Announce Supply Agreement for Cancer Treatment Systems

PALO ALTO, Calif.--(BUSINESS WIRE)--March 22, 2001-- Varian to be Sole Source Supplier of Radiotherapy Equipment, Including SmartBeam IMRT Technology

Varian Medical Systems, Inc. (NYSE: VAR) and InSource Health Services, one of the nation's largest health care group purchasing organizations, today announced they have renewed a three-year agreement to supply InSource members with advanced radiotherapy systems for treating cancer. The sole source supplier 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 goal of the InSource Contract Directors is to identify and evaluate healthcare products and services for our members, and to negotiate competitive volume-based pricing with our industry's leading vendors, to support them," said Ed Gravell, President, with InSource Health Services. "The Varian product line for radiation therapy is a valuable asset to InSource's contract portfolio. The contract renewal will enable us to continue to provide our members access to the highest caliber of cancer treatment equipment."

"This agreement gives InSource members continued access to our systems for radiotherapy including SmartBeam IMRT," said Timothy Guertin, president of Varian Medical Systems' oncology business.

A group buy with an e-commerce link to will run from May 1 to June 30, as part of this agreement. is the e-commerce site of InSource's parent company, MedAssets.

Under the renewed agreement, InSource Health Services will provide its members with access to Varian Medical Systems' full range of radiotherapy products including the Clinac(R) EX Platinum linear accelerators, Ximatron(R) treatment simulators, 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.

In addition, Varian will become InSource's sole source provider of CT Simulators which are manufactured by General Electric Medical Systems (GEMS) and sold to radiation oncology departments in North America by Varian Medical Systems under a special 'See and Treat Cancer Care' partnership agreement. (See Varian's October 23, 2000 announcement at

InSource's membership comprises over 11,000 health care facilities in 50 states, with a collective buying power of over $2 billion annually. For more information on InSource, please visit

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

About InSource Health Services: Since its inception in 1976, InSource has built one of the industry's strongest business portfolios by saving members time, money and effort. InSource's membership includes acute care facilities and non-acute site providers (surgery centers, long-term care facilities/retirement centers/nursing homes, home health agencies, closed pharmacies, HMOs, dialysis units, and multi-disciplinary clinics).

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, 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.
Varian Medical Systems
Spencer Sias, 650/424-5782
InSource Health Services
Ed Gravell, 818/773-2647