One of the last of the major hospital groups to commit to an Internet strategy, Novation has leaped into e-commerce with both feet through its recent deal with Neoforma. The company faces a host of challenges, not the least of which come from uncertain hospitals and reluctant product companies. For suppliers, the alliance of leading groups and dot-com companies raises questions about the future of the hospital marketplace.

In an industry segment that badly needs a bold move, medibuy.com has supplied one in its recent deal to acquire empactHealth, the e-commerce site of HCA. Combining empactHealth with its earlier partnership with Premier, medibuy now brings together a leading for-profit system and not-for- profit alliance, creating arguably the hospital industry's largest e-commerce platform. Medibuy's challenge: to get past the skepticism and uncertainty that has plagued B2B e-commerce for the past half year.

At press time, seven companies, including four groups and three dot-coms, announced that they would be combining forces to create a set of industry standards in electronic commerce, in an initiative called the E-Standards Work Group. The groups are Novation Inc., Premier Inc., Consorta Catholic Resource Partners, and HealthTrust; the e-commerce companies are Neoforma.com, medibuy,com Inc., and EmpactHealth.com