Medline Industries, Inc. Signs $360 Million Prime Vendor Distribution Agreement With Southeast Supply Solutions

MUNDELEIN, IL–(Marketwire – July 8, 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 for distribution services with Southeast Supply Solutions, LLC (SESS) based in Tampa, Fla. The five-year agreement, which began June 1, 2010, is anticipated to save SESS’ member hospitals an estimated $18 million over the term of the contract.

SESS, a limited liability corporation owned by select VHA Southeast members located throughout Florida and Alabama, enables members to align supply chain strategies that leverage aggregated supply volume to drive supply chain cost reductions and improve operating efficiencies.

Medline is expected to generate more than $360 million in medical and surgical distribution sales from the partnership over the term of the agreement.

According to Sidney Hobbs, Medline’s Vice President of National Accounts, “Medline will provide full distribution services to SESS members, which together comprise 18 hospitals. Medline will drive cost savings to SESS through operational efficiencies and cost reductions throughout the distribution channel and from Medline brand product purchases. Medline will distribute products direct to the healthcare facilities from its Orlando distribution center and a new distribution facility in Alabama, expected to open in 2011.”

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, clinical education and practical solutions to help the facility control costs and improve patient care and safety.

“The commitment by the SESS members to Medline sets the foundation for current and future operation efficiencies resulting in lower supply chain costs,” said James Etherton, Director Materials Management, Bay Medical Center and SESS Operating Committee Chairman.

About Southeast Supply Solutions (SESS)
SESS, a limited liability corporation owned by eight VHA Southeast members, enables members to align supply chain strategies that leverage aggregated supply volume to drive supply chain cost reductions and improve operating efficiencies while maintaining the highest quality of care for the communities. The eight member owners of SESS include: Baptist Health (Montgomery, AL); Baptist Health Care Corporation (Pensacola, Fla); Bay Medical Center (Panama City, Fla); Citrus Memorial Health System (Inverness, Fla); DCH Healthcare Authority (Tuscaloosa, Ala); Lakeland Regional Health Systems, Inc. (Lakeland, Fla); Parrish Medical Center (Titusville, Fla); University Community Hospital, Inc. (Tampa, Fla).

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 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.