Sourcing a Clean Bill of Health

Network of leading medical institutions selects FreeMarkets

Pittsburgh, PA  August 12, 2002  FreeMarkets Inc., a global provider of sourcing software and service solutions, announced it has signed an agreement with the West Penn Allegheny Health System (WPAHS), a network of medical institutions in the Pittsburgh region that includes a number of the nation's leading hospitals and research facilities. Under the terms of the agreement, West Penn Allegheny will use FreeMarkets as its platform for strategic sourcing, leveraging the company's FullSource solution to create online markets for a variety of goods and services. The agreement follows the successful completion of a pilot program, which FreeMarkets and West Penn Allegheny began in 2001.

FreeMarkets said its FullSource is a solution that combines e-sourcing services in hundreds of spend categories; industry-specific program management; global market operations services; information and knowledge about specific commodities and supply market dynamics; and advanced sourcing technology. Under the terms of its agreement with FreeMarkets, West Penn Allegheny will use FreeMarkets FullSource to create online markets for direct materials, as well as indirect goods and services.

David Zimba, vice president of corporate contracting at West Penn Allegheny, said that as one of the country's leading healthcare providers, the West Penn Allegheny Health System is committed to making sure its patients receive the best care in both its medical practices and organizational processes. "FreeMarkets provides us with access to technology and services, which we can leverage to enhance the efficiency of our sourcing process and lower our sourcing costs, and we look forward to working with them to create tangible benefits for our network and its members," he said.

Rob Austin, the director and general manager of the consumer goods and services sector at FreeMarkets added that FreeMarkets is going to help West Penn Allegheny continue in its reputation as a facility with exceptional levels of service. "The West Penn Allegheny Health System is a pioneer among healthcare institutions in the adoption and implementation of e-sourcing, and we are very pleased to be a key piece of their overall strategy," Austin said.