Contracts allow hospitals to deliver reliable, cost-effective nitric oxide therapy for their most vulnerable patients
According to the National Institutes of Health, the FDA has approved inhaled nitric oxide (iNO) therapy as a crucial, safe treatment for term and near-term newborns (>34 weeks) with breathing
failure caused by high blood pressure in the lungs (persistent pulmonary hypertension). iNO therapy improves oxygen levels and reduces the need for dangerous, invasive heart-lung bypass machines.
Inhaled nitric oxide gas must be delivered using an expertly calibrated, FDA-approved breathing system while a baby is on a ventilator. “While its clinical impact is well established, the cost of the therapy combined with the equipment requirements and historically limited supplier landscape have made it a challenging category for hospitals to manage,” explains Kathy McCardell, BSN, RN, Director of Radiology & Cardiovascular Services for HealthTrust and leader of its Respiratory Therapy Specialty Committee.
“As the market has evolved, we have consistently heard from members that a reliable solution was needed to support high-quality neonatal care,” adds McCardell.
In collaboration with Christina Katamay, Vice President of Purchased Services on HealthTrust’s Commercial Sourcing team, members of HealthTrust’s Respiratory Therapy Specialty Committee shared which suppliers they were using for iNO therapy.
Historically, Katamay shares, “iNO Therapeutics had a patent on the nitric oxide space, so no one else could offer it. Their patent expired around 2022, resulting in other companies emerging to offer this service.” The Purchased Services team initiated an RFP process in 2022 to vet related suppliers; two were added to HealthTrust contracts in 2023, and a third was added this year.
Trey Baker, a contract manager on Katamay’s team, gained key knowledge when he oversaw the most recent RFP process. He now manages the contracted supplier relationships and advocates on behalf of HealthTrust members.
Nitric oxide therapy, inhaled,neonate on-contract suppliers:
- Beyond Air (#142859)
- iNO Therapeutics (#110528)
- Vero Biotech (#95872)
iNO as a strategic contracting priority
Baker shares that the iNO market has shifted from a single-source industry to a more competitive space. “As a result of this transition, HealthTrust was able to negotiate improved pricing and expanded choices, as well as introduce contracting models that best reflect the needs and preferences of our membership,” he adds.
Key dynamics of the contracts include:
- Increased supplier competition, driving more favorable pricing
- New delivery systems offering operational efficiencies
- Greater focus on utilization management and volume ownership
- Attention to service reliability and equipment uptime
Contracts deliver value & operational advantages
“HealthTrust’s iNO portfolio is designed to solve challenges that include cost, reliability and clinical support,” says Katamay. “We are contracted with suppliers whose solutions give members the flexibility to choose options that best fit their NICUs, since no two are alike.”
By aggregating member spend and aligning contracting strategies with clinical requirements, HealthTrust’s iNO suppliers help hospitals manage a high-impact therapy with greater predictability and lower total cost.
iNO therapy requires coordination across clinical, respiratory therapy and supply chain teams. The right contracts help streamline that work by ensuring:
- Reliable access to delivery systems, disposables and gas supply
- Clear expectations for supplier responsiveness and equipment maintenance
- Accurate, actionable key performance indicators tied directly to utilization levels
- Training and education support for front-line staff
- Simplified procurement and standardized pricing across facilities
iNO solutions from HealthTrust
HealthTrust’s contracted iNO portfolio helps members navigate a changing supplier landscape with practical tools and contract structures that support access, consistency and informed decision-making across NICU teams.
- Competitive, pre-negotiated pricing reduces one of the NICU’s highest-cost therapies
- Multiple contracted suppliers support choice, mitigate risk and encourage innovation & competitive pricing
- Commitment-based and tiered pricing options reward volume and drive deeper savings
- Standardized terms and service expectations protect members from variability in equipment support
- Clinical and operational resources help NICUs implement safe, efficient therapy protocols
- Utilization insights and benchmarking highlight opportunities to reduce unwarranted variation, supporting volume transparency
Looking ahead
As neonatal respiratory care continues to evolve, hospitals will continue to face decisions about iNO technology, utilization and cost management. “With multiple suppliers in this category, HealthTrust is well positioned to evaluate options as they emerge and maintain supply stability so our members can stay focused on delivering high-quality patient care,” adds Baker.
Review the iNO contracted suppliers through the Member Portal. Reach out to your HealthTrust Account Manager or email commercial@healthtrustpg.com with questions.
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