Newspaper Exposes Novation and GHX Scheme to Monopolize Hospital Supplies

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Ft. Worth Texas Newspaper that exposed MCI Worldcom fraud features Medical Supply Chain’s lawsuit against GE and Novation’s monopolization of hospital supplies.

A Ft. Worth Texas newspaper has featured the Kansas City based company Medical Supply Chain, Inc. (MSC) in “Hijacking at the Hospital, Purchasing groups created to hold down health costs seem to be holding up patients instead.” by Pablo Lastra, The article is the cover story of the Ft. Worth Weekly.

The story exposes Novation, LLC, a Texas company and its scheme to sell its troubled electronic hospital supply marketplace Neoforma, Inc. to GHX. GHX is a competing electronic marketplace created by General Electric’s CEO Jeffrey Immelt and described in the article as “a privately owned enterprise belonging to Premier and 80 of the largest medical supply manufacturers, including Becton Dickinson and Tyco.” Pablo Lastra’s industry source stated; ”The merger means Novation has jumped in bed with its largest rival” in the $200 billion plus yearly healthcare supply market.

On November 7th, 2005, the law firm of Milberg Weiss filed a Delaware shareholder lawsuit seeking to stop the merger.

MSC CEO Samuel Lipari was interviewed about MSC’s anti-trust lawsuit which covers the merger between GE (GHX) and Novation (Neoforma) seeking $1.5 billion in damages from Novation, Neoforma, and their executives, as well as GE, US Bank and investment firm Piper Jaffray. MSC is represented by Bret Landrith in Topeka, KS.

On July 11th, 2005, Jeffrey Hill, a correspondent for The Hill, The Newspaper For and About Congress, reported that judiciary panel members, Senators Jon Kyl (R-Arizona), Charles Schumer (D-New York), and Sam Brownback (R-Kansas) a GOP presidential hopeful, conducted a series of behind-the-scenes talks and plan to offer their support to the GPOs' voluntary disclosure guidelines and avoid increased regulation to combat GE and Novation’s monopolization of medical devices, drugs and other products hospitals purchase. MSC’s lawsuit alleges Novation and its co-conspirators artificially inflate medical supply costs through their monopoly.

About Ft. Worth Weekly:1204-B W Seventh St Ste 201 Ft. Worth, Texas 76102 Phone: (817) 321-9700 Fax: (817) 335-9575 The Weekly’s editorial staff may have more decorations per capita than any newsroom in the country: two Pulitzer Prizes and the George Polk Award for courageous reporting, plus numerous awards from the Houston and Dallas press clubs, the State Bar, National Women’s Political Caucus, Association of Alternative Newsweeklies and Investigative Reporters and Editors. The Weekly’s News and and features have helped expose the corruption that brought down MCI Worldcom and helped victims of human trafficking, corporate racism, and government-sanctioned pollution receive justice. To learn more visit:

About Medical Supply Chain, Inc. (MSC) is a worldwide provider of web-based supply chain solutions with an electronic marketplace serving health care communities and their trading partners. Privately held, the company was founded in May of 2000 with a mission to deliver enabling supply chain technology in health care. The company’s products are completely hosted and built entirely on applications and services that combine simplicity and power. These applications and services are rapidly deployed through training, management and certification programs delivering a much more cost efficient supply chain solution. To learn more about Medical Supply Chain visit:

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Samuel Lipari
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