Premier in Deal With Baxter, Allegiance

Premier Inc. of Chicago, an alliance of hospital and health systems, said it has entered into a seven-year deal to buy medical supplies from Baxter International Inc. and Allegiance Healthcare Corp. The accord has a potential value of $1 billion a year. Totawa, N.J.-based Vital Signs Inc. also signed an agreement to supply Premier with anesthesia products. Premier is a system of more than 1,800 hospitals and health-care facilities formed through the merger of three alliances. The agreements represent the largest group-purchasing award for health-care supplies in history. Allegiance Healthcare is the U.S. subsidiary of Allegiance Corp. Deerfield, Ill.-based Allegiance shares rose 37.5 cents to $22.625; Deerfield-based Baxter shares lost 12.5 cents to $42.50; Vital Signs stock rose $1.125 to $23.75. All trade on the NYSE.