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updated: 2/24/2014 10:45 AM

Mundelein-based Medline signs procedure tray deal

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Daily Herald News Services

Medline Industries in Mundelein said it has been selected by the Upper Midwest Consolidated Services Center, a member-driven, member-owned health care supply network associated with VHA's Upper Midwest region, as its exclusive provider of custom procedure trays.

The five-year agreement will deliver an estimated combined savings of $17 million to the 43 hospital systems that access the UMCSC.

Medline's custom procedure tray program was designed to meet the unique requirements of the hospitals served by VHA's UMCSC. The program improves distribution efficiencies, product standardization and inventory optimization for procedure trays and delivers value by sharing information and working across organizational boundaries.

"VHA's Upper Midwest region and the UMCSC are committed to attacking the cost drivers within health care and creating synergies with suppliers and providers to bring real cost saving solutions for our member hospitals. The agreement with Medline is an example of that commitment," said Chris Holt, senior vice president and executive officer, VHA Upper Midwest region. VHA's UMCSC serves 43 member hospitals in 20 states.

Medline will assemble the custom procedure trays to each hospital's exact specifications and deliver them directly to each member facility from its 40 distribution centers strategically located throughout the United States. Medline and the UMCSC have created an infrastructure that will enable facilities in the custom procedure tray program to identify additional savings and efficiencies.

"This program goes far and above the typical vendor-customer contractual arrangement to increase efficiencies and lower our collective costs," said Joe Gwinn, vice president of corporate sales for Medline. "Our program is built on a model of mutually aligned incentives and rewards, which allow us to work together toward common financial and operational goals, as well as enhanced patient care at every member hospital."

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