SOURCE: Medline Industries, Inc.

Medline Industries, Inc.

September 17, 2009 13:40 ET

Adventist Health System to Save Estimated $5 Million to $8 Million With New Medline Prime Vendor Agreement

Medline Brand Products and Reduced Distribution Fees Drive Cost Savings

MUNDELEIN, IL--(Marketwire - September 17, 2009) - With healthcare providers looking for cost-saving solutions in the current economy, Medline Industries, Inc. announced today the signing of a cost management prime vendor agreement with Winter Park, Fla.-based Adventist Health System. The five-year agreement began September 1, 2009, and is anticipated to save the system an estimated $5 million to $8 million over the term of the contract.

Under the agreement, Medline will provide its broad array of Medline brand medical and surgical products, including exam gloves, surgical procedure trays, patient care products, disposable protective gowns and bandages. Medline is expected to generate more than $400 million in medical and surgical product sales from the partnership over the term of the agreement.

"Medline's distribution offering along with its ability to help us significantly reduce our supply costs, will help position us for the long term," said Celeste West, Vice President for Supply Chain of Adventist Health System. "They offered us the tools, products, service, and cost structure that best met our needs."

Medline will drive cost savings through delivering Medline manufactured products direct to Adventist Health System's 33 facilities located throughout the U.S., including its flagship 2,200-bed Florida Hospital. Medline will also deliver cost savings by reducing distribution fees on other national brand products and product standardization. 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 Adventist Health System

Founded in 1973 to support and strengthen Seventh-day Adventist healthcare organizations in the Southern and Southwestern regions of the United States, Adventist Health System has quickly grown to become the largest not-for-profit Protestant healthcare provider in the nation. Today, Adventist Health System supports 37 hospitals and employs 50,000 individuals. Adventist Health System hospitals are comprised of more than 6,600 licensed beds, providing care for nearly 4 million patients each year in inpatient, outpatient and emergency room visits. Adventist Health System's flagship, Florida Hospital, is one of the largest healthcare providers in America and a national leader in cardiac care with almost 2,200 beds on seven campuses.

About Medline Industries, Inc.

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.

With a growing network of 35 distribution centers around the country, Medline is able to deliver products to customers where and when they need them. To help deliver its 100,000-plus products, Medline has 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.

Meeting the highest level of national and international quality standards, Medline is FDA QSR compliant and ISO 13485 registered. Medline serves on major industry quality committees to develop guidelines and standards for medical product use, including the FDA Midwest Steering Committee, AAMI Sterilization and Packaging Committee and various ASTM committees. For more information on Medline, visit our Web site, www.medline.com.

Contact Information

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    (847) 643-3309

    Jerreau Beaudoin
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