SOURCE: Medline Industries, Inc.
July 21, 2010 12:20 ET
AROK Purchasing Coalition Anticipates $25 Million Savings Through New Prime Vendor Supply Agreement With Medline Industries, Inc.
Medline Brand Products and Reduced Distribution Fees Drive Cost Savings
MUNDELEIN, IL--(Marketwire - July 21, 2010) - Medline Industries Inc., the nation's largest privately held manufacturer and distributor of healthcare supplies, announced today the signing of a cost management prime vendor agreement with the AROK Purchasing Coalition, a VHA supply network comprised of nearly 50 acute care facilities in Arkansas and Oklahoma. The five-year agreement is anticipated to save AROK an estimated $20-$25 million over the term of the contract.
Medline is expected to generate more than $500 million in medical and surgical product sales from the partnership over the term of the agreement.
AROK was formed to help VHA member hospitals in Arkansas and Oklahoma increase efficiencies and reduce expenses by aggregating supply and services expenditures.
As part of the agreement, Medline will provide its broad array of Medline brand medical and surgical products, including surgical procedure trays, patient care products, disposable protective gowns, exam gloves and bandages. Medline will drive cost savings to AROK members by delivering products direct to the healthcare facilities from two of Medline's distribution centers located in Oklahoma City and Memphis, Tenn.
Medline will also deliver cost savings by reducing distribution fees on other national brand products and product standardization. In addition, Medline will provide enhanced reporting capabilities and offer comprehensive product utilization, education and practical solutions to help the facility control costs and improve patient care.
The AROK Purchasing Coalition is a VHA Supply Network. Twenty-one VHA health care organizations, representing nearly 50 hospitals in Arkansas and Oklahoma officially joined together in June 2008 to increase efficiencies and reduce expenses by aggregating supply and services expenditures. Combined annual supply purchases of the purchasing coalition represent in excess of $600 million. As a limited liability corporation, the AROK Purchasing Coalition is recognized as a single VHA member entity and as a large integrated delivery system by the supplier and distributor community. VHA operates the purchasing coalition at the direction of the members.
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. Headquartered in Mundelein, Ill., Medline has more than 900 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 450 major hospitals and healthcare 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 32 distribution centers around the country, as well as an expanding, dedicated transportation fleet with over 200 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.
VHA Inc., based in Irving, Texas, is a national network of not-for-profit health care organizations that work together to drive maximum savings in the supply chain arena, set new levels of clinical performance and identify and implement best practices to improve operational efficiency and clinical outcomes. Formed in 1977, through its 16 regional offices, VHA serves more than 1,400 hospitals and more than 25,500+ non-acute care providers nationwide. VHA was ranked by Modern Healthcare as the 7th best place to work in health care in 2009.