For Immediate Release
Medline Signs Five-Year, $75 Million Prime Vendor Distribution Deal at Daughters of Charity Health System
Hospitals to Reap Significant Savings
Wednesday, August 30, 2006 —
Mundelein, Ill. - Medline Industries Inc., the nation's largest privately held manufacturer and distributor of medical supplies announced today that the company recently signed a $75 million Prime Vendor deal to provide medical supplies to Daughters of Charity Health System, a five-hospital system in California. The Daughters of Charity Health System (DCHS) is a regional healthcare system of five hospitals spanning the California coast from the Bay Area to Los Angeles. The sponsors are the Daughters of Charity of St. Vincent de Paul who, for more than 370 years, have been serving the sick and the poor through healing ministries around the world. "We look forward to implementing and establishing a long-term relationship with Daughters of Charity Health System. Our prime vendor program will provide high quality Medline brand products and distribution services with significant quantitative value. The program will also provide comprehensive logistical, standardization, and utilizations services through Medline Select," said Tim Jacobson, vice president, Medline Corporate Sales. The Daughters of Charity Health System will also see significant cost savings. In the first year, Medline estimates it will save the system more than $900,000. Over the five-year term of the agreement, Medline estimates it will save the system nearly $5 million. "We are impressed with the quality of Medline's products and services," said Richard Hutsell, DCHS vice president and chief information officer. "We believe our values are compatible, and Medline's commitment to their associates is admirable and respectable."
About Medline
Medline, the nation's largest privately held manufacturer and distributor of healthcare products, manufactures and distributes more than 100,000 products to hospitals, extended care facilities, surgery centers, home care dealers and agencies and other markets. Headquartered in Mundelein, IL, Medline has more than 800 dedicated sales representatives nationwide to support its broad product line and cost management services.
Over the past five years, Medline has been the fastest growing distributor of medical and surgical supplies in the U.S., serving as the primary distributor to over 250 major hospitals and health care systems. As a leading distributor, Medline offers a comprehensive array of consulting and management services encompassing the supply chain and logistics, utilization and standardization, business tools and enhanced reporting capabilities, and on-staff clinicians.
Medline has a growing network of 34 distribution centers around the country, as well as an expanding, dedicated transportation fleet with over 160 vehicles in a variety of sizes to fit customers' specific delivery needs. The fleet is equipped with the latest navigation devices for enhanced order tracking and communication.