For Immediate Release
Dimensions Healthcare System Reduces Supply Costs with New Prime Vendor Agreement with Medline
Anticipated $790,000 Savings to System Over Three-Year Agreement
Monday, February 09, 2009 —
As the economic climate puts more pressure on hospitals to reduce costs, Medline Industries, Inc., the largest privately held manufacturer and distributor of healthcare products in the country, announced today the signing of a cost management prime vendor agreement with Maryland-based Dimensions Healthcare System. The three-year agreement, which is anticipated to save Dimensions more than $790,000 over the length of the contract, will generate more than $9 million in medical and surgical product sales for Medline.
Under the terms of the agreement, Medline will distribute both its Medline brand and other national brand medical and surgical products to Dimensions, including surgical procedure trays (disposable medical components for a single surgical procedure contained in one convenient kit), surgical gowns and gloves, exam gloves, and briefs and underpads.
The agreement includes Dimensions' two hospitals: Prince George's Hospital Center, a 290-bed acute care teaching hospital in Cheverly, MD and Laurel Regional Hospital, a 146-bed full-service community hospital in Laurel, MD. Dimensions is the largest not-for-profit provider of healthcare services in Prince George's County.
Medline will drive cost savings through lower distribution fees on non-Medline products, product standardization and having Medline manufactured products delivered direct to the facility. In addition, Medline will also provide enhanced reporting capabilities and offer comprehensive product utilization and education programs to help the facility control costs and achieve maximum efficiency.
About Dimensions Healthcare System
Dimensions Healthcare System was formed in 1982 and is an integrated, not-for-profit healthcare system serving residents of Prince George's County and the surrounding area. Dimensions and its member institutions and affiliated organizations provide comprehensive quality healthcare services ranging from prenatal care to behavioral healthcare to rehabilitation services.
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.