VHA Awards Deal To AT&T

VHA Inc., a nationwide network of 1,800 health-care organizations and their physicians, has awarded a five-year, $500 million contract to AT&T for long-distance and local telephone services, data network services, Internet access, teleconferencing, and operator services.

The contract, announced yesterday, is effective May 1 and is expected to save VHA members about $55 million, compared with standard costs for these services.

VHA has had long-distance agreements with AT&T for its members in the past, but this is the first package of services negotiated with AT&T, according to a VHA spokesman. About 800 VHA members already use AT&T for long-distance services.