How the Power of Collaboration Can Help Healthcare Organizations Enhance Operational Efficiencies
Medline and Stratum Med ink deal that offers more than 50 physician groups solutions for streamlining their purchasing
Mundelein, Ill., March 17, 2016 – As reimbursement continues to depend on performance, physicians are paying even closer attention to their spending. One way that healthcare providers are addressing key supply chain issues is by collaborating with manufacturers and distributors who can help them think outside the box to control supply chain costs. Medline’s success in helping customers enhance operational efficiencies by providing customized solutions across the continuum of care recently led to a $25 million group purchasing agreement with Stratum Med, a collaborative alliance of physician-owned and health system-employed physician groups.
The three-year deal will offer negotiated pricing on essential medical supplies such as needles, medical gloves, and wound care supplies to more than 50 physician groups nationwide, with a focus on the Midwest.
For Stratum member Derek Armstrong, CEO of Illinois-based Midwest Orthopaedic Center, his partnership with Medline launched in December when his previous medical supplies distributor announced they were closing shop. He worked hand-in-hand with Stratum’s executive director of purchasing to select a primary distributor. With two offices and 17 physicians who focus on treating orthopedic injuries, it was crucial to find a partner who could lead a seamless implementation process. After talking with Medline, he was confident that the company’s responsiveness and overall commitment to each individual customer was a good fit for his practices.
“I had 45 days to get a new vendor in place. From the very first conversation, Medline continues to be flexible and offers a personalized approach to help me successfully navigate our new partnership. It’s been a very simple transition with zero resistance from my staff,” said Armstrong. “Whether a sales representative or a product manager, someone is always coming up with a game plan to address my questions or concerns. From the company’s supply chain expertise to high quality supplies, and high-level customer service, I’m on track toward enhancing operational efficiencies and achieving a goal of double digit cost savings.”
Over the past few months, Armstrong has converted many of his supplies to Medline branded products and is receiving routine medical supplies and custom packs. By working with the distributor to assess the types of products being included in the custom packs, Armstrong has already started to see savings. Additionally, Midwest Orthopaedic Center never had a formal inventory management system in place. As part of this new deal though, Armstrong is receiving access to Medline INSIGHT, an online tool that helps healthcare providers understand general and specific information about purchases, usage, pricing, orders and shipment status.
“We look forward to working with additional Stratum Med members who like Derek, need personalized solutions for managing the ever-changing healthcare landscape. With a robust portfolio of more than 350,000 products and clinical solutions, Medline offers a one-stop shop for physician office supplies that help deliver better outcomes in patient care,” said Scott Wakser, senior vice president of non-acute corporate accounts at Medline.
To help Stratum Med members receive their products when and where they need them, Medline distribution centers are located in every major metropolitan area across the U.S. with more than 40 facilities and its own fleet of more than 450 trucks, one of the largest and most advanced distribution networks in the industry.
The contract is effective through Jan. 1, 2019.
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About Medline
Medline is a global manufacturer and distributor serving the healthcare industry with medical supplies and clinical solutions that help customers achieve both clinical and financial success. Headquartered in Mundelein, Ill., the company offers 350,000+ medical devices and support services through more than 1,200 direct sales representatives who are dedicated points of contact for customers across the continuum of care. For more information on Medline, go to www.medline.com or http://www.medline.com/social-media to connect with Medline on its social media channels.