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Medline enters $725 million supplier partnership with Mount Sinai

por John R. Fischer, Senior Reporter | April 06, 2022
Business Affairs Parts And Service
Medline will again be the exclusive distributor to Mount Sinai Health System.
Mount Sinai Health System has once again appointed Medline to be its exclusive medical supplies and solutions distributor in a multiyear $725 million prime vendor partnership.

Both organizations will work together to determine strategies that will enhance supply chain operations, control expenses and improve patient outcomes. Medline will also provide essential medical supplies and solutions to Mount Sinai’s eight hospital campuses, school of medicine and ambulatory practices.

Additionally, it will integrate the healthcare system’s warehouse locations into its MedTrans regional fleet distribution routes to allow for more frequent deliveries of critical medical supplies. "We are excited to resume our prime vendor partnership, continuing to provide their system with reliable, superior service and together creating customized solutions to help healthcare run better,” said Ron Barrett, vice president of corporate sales at Medline, in a statement.

The resources Medline provides will allow Mount Sinai to better manage key metrics, such as item utilization, contract compliance, price accuracy and spending by product categories through Medline’s advanced analytics platforms.

It also will increase Mount Sinai’s storage capacity with third party logistics (3PL) solutions through a new 1.3 million square foot center in Montgomery, New York. The facility is part of the company’s $1.5 billion Healthcare Resilience Initiative.

The company plans to place multiple team members in the healthcare system as well, including full-time analysts and a logistics specialist to help hospital executives address specific caregiver needs and find new ways to optimize care.

Medline and Mount Sinai have a relationship that dates back over 20 years. Based in Illinois, Medline has over 30,000 employees worldwide and does business in more than 125 countries and territories. The company recently partnered with Covenant Health, a healthcare system of three hospitals in Massachusetts, to streamline its operations. The cost of that partnership was $75 million.

It also is now the exclusive distributor for medical supplies and solutions to the University of Kansas Health System. The two will work together to enhance supply chain procurement and logistics operations, patient outcomes and clinical efficiencies at the healthcare system's five acute care hospital facilities.

"Supply chain distribution is highly complex, especially for an academic health system. It is crucial for us to partner with a distributor that can align with our strategic vision, providing us with end-to-end solutions," said Janie Ott, vice president of supply chain at the University of Kansas Health System.

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