KCI announces agreement to renew existing single-source contracts with KCI's TSS business

Kinetic Concepts, Inc. (NYSE: KCI) today announced an agreement with Novation, one of the health care industry's largest supply contracting companies, to renew its existing single-source contracts with KCI's Therapeutic Support Systems (TSS) business through the end of 2013. Through Novation, KCI provides access to its innovative hospital beds, mattress replacement systems, overlays and bariatric products to more than 30,500 health care institutions across the U.S.

“This agreement ensures that patients served by Novation's alliance members will continue to have access to the highest quality and most advanced therapeutic support systems available.”

"KCI and Novation share a longstanding relationship defined by a mutual commitment to deliver innovative therapies and favorable economic propositions to America's leading health care institutions," said Stephen Seidel, global president, KCI Therapeutic Support Systems. "This agreement ensures that patients served by Novation's alliance members will continue to have access to the highest quality and most advanced therapeutic support systems available."

As the contracting agent for these institutions, Novation manages the rental agreements with KCI for products across all four of its TSS care segments, including:

• Critical Care. Often used in the intensive care unit, KCI's uniquely designed rotating hospital beds are designed to help address life-threatening pulmonary complications associated with immobility (TriaDyne Proventa™ Therapy System).
• Wound Care. KCI's wound care surfaces, which include mattress replacement systems and overlays, are designed to help reduce and treat skin breakdown and pressure ulcers (KinAir™ IV Low Air Loss Therapy; First Step All in One™ Mattress Replacement System).
• Fall Injury Prevention. KCI offers therapeutic bed systems for med-surg patients that help address safety concerns such as fall injuries, skin integrity and infection control (KCI AtmosAir™ 9000 Mattress Replacement System (MRS) combined with the Carroll Hospital Group Spirit Select™ Bed).
• Bariatric Care. KCI's bariatric products assist caregivers in the safe and dignified handling of patients of size (BariMaxx™ II Therapy System; BariAir™ Therapy System; MaxxAir ETS™ Mattress Replacement System).

As the industry's leading supply contracting company, Novation delivers unmatched savings to nearly 25,000 VHA Inc. and University HealthSystem Consortium (UHC) member organizations and 5,500 Provista members covering 28,000 sites - representing nearly one-half of the nation's total staffed beds, admissions and surgeries.

Novation provides alliance members contract and price management and spend management services. Novation typically manages the entire life cycle of key contracts on behalf of members, including selecting suppliers, monitoring pricing and enforcing the implementation of the contract.

Novation's relationship with KCI spans more than 20 years.