DUBLIN, Ohio, June, 22, 2005 — Cardinal Health, Inc. (NYSE: CAH), the leading provider of products and services supporting the health-care industry, today announced a five-year, $200 million supply agreement with Lahey Clinic Medical Center that will improve efficiency at the world-renowned nonprofit group practice and hospital, based in Burlington, Mass.
Under the agreement, Cardinal Health will establish a system to automate and improve the ordering, management and replenishment of pharmaceuticals and medical and surgical supplies at Lahey Clinic. Through Cardinal Health’s LogisticSource program, supplies will be reordered automatically upon their use and delivered directly to the point of care. By reducing touch points in the distribution process, the comprehensive LogisticSource program will provide Lahey Clinic’s clinical staff more time to focus on delivering the highest quality of care.
Cardinal Health will use its Pyxis® products to automate the dispensing, tracking and reordering of medications and supplies. Its Procedure-Based Delivery System will be employed to provide custom surgical kits with the supplies required for specific surgical procedures. Consulting services from Cardinal Health will help facilitate operations.
In addition, Lahey Clinic will continue to utilize the Cardinal Health Pyxis PatientStation® system in patient rooms. This state-of-the-art bedside computing system provides clinicians with secure, bedside access to clinical applications and gives patients and their families an array of information, education and communication choices at the point of care.
“The strategic decision to partner with Cardinal Health for our supply-chain solution was reached following careful analysis, and it positions Lahey Clinic for future growth,” said Lynn Malloy Stofer, the clinic’s senior vice president of clinical services. “We expect dramatic improvements in the way that supplies and products move from the dock to our doctors and how the system is automated and replenished at the point of care. We are confident that the Cardinal Health agreement will deliver notable value and economic advantages to our organization.”
“Managing the supply chain represents one of the top challenges for our hospital customers,” said Mark Rosenbaum, president of Sales, Integrated Provider Solutions for Cardinal Health. “LogisticSource provides an innovative, automated process to ensure medical products and pharmaceuticals are in stock at the time of need. It lets clinicians focus again on their core competency – taking care of patients.”
Lahey Clinic is a physician-led, multidisciplinary group practice with more than 450 physicians and 4,000 nurses, therapists and other support staff members. The Lahey Clinic's multidisciplinary approach allows patients access to pre-eminent physicians from virtually every medical specialty, who cooperate to develop personalized treatment plans for each patient.
About Cardinal Health
Cardinal Health, Inc. (www.cardinalhealth.com) is the leading provider of products and services supporting the health- care industry. Cardinal Health develops, manufactures, packages and markets products for patient care; develops drug-delivery technologies; distributes pharmaceuticals and medical, surgical and laboratory supplies; and offers consulting and other services that improve quality and efficiency in health care. Headquartered in Dublin, Ohio, Cardinal Health employs more than 55,000 people on six continents and produces annual revenues of more than $65 billion.
Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Cardinal Health's Form 10-K, Form 8-K and Form 10-Q reports (including all amendments to those reports) and exhibits to those reports, and include (but are not limited to) the costs, difficulties, and uncertainties related to the integration of acquired businesses, the loss of one or more key customer or supplier relationships or changes to the terms of those relationships, changes in the distribution patterns or reimbursement rates for health-care products and/or services, the results, consequences, effects or timing of any inquiry or investigation by any regulatory authority or any legal and administrative proceedings, the impact of previously announced restatements, and general economic and market conditions. Cardinal Health undertakes no obligation to update or revise any forward-looking statement.