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Medline invests $500 million in medical supply chain for providers

by John R. Fischer, Senior Reporter | September 14, 2022
Business Affairs Parts And Service
Medline is investing $500 million into the medical supply chain inventory for providers.
Medline has committed another $500 million for the availability and timely delivery of medical supplies to providers.

The investment, completed at the end of the second quarter of 2022, brings the total on-hand inventory value of medical supplies to more than $4 billion and alleviates ongoing supply chain challenges within the healthcare industry.

“As the operators of the largest U.S. supply chain of any medical-surgical manufacturer and distributor, we continue to explore new solutions for the supply chain challenges our industry faces today while also preparing for tomorrow,” said Jim Boyle, executive vice president for Medline, in a statement.

Since 2018, Medline has invested $2 billion in its U.S. distribution centers, manufacturing capabilities and IT upgrades. It is planning to spend $400 million more in 2022.

One area it is investing in significantly is the resiliency of the supply chain, via its national capital expenditure campaign, the Healthcare Resilience Initiative, which is responsible for creating approximately 8,500 new jobs, eight new distribution centers, nearly 150 manufacturing expansion projects, and a new global digital customer ordering platform, as of December 2021.

It has been exploring options throughout the pandemic to meet higher demands for medical supplies nationwide. This includes expanding its U.S. manufacturing services. A most recent example is the addition of Micro-Kill disinfectant wipes at its facility in Hartland, Wisconsin, with production scheduled to begin in the fourth quarter of 2022.

It also opened in July, what is estimated to be the largest medical grade distribution center in the U.S., in Grayslake, Illinois, for $125 million. The facility will ship solutions to hospitals, ambulatory surgery centers, hospices, and physician offices, and eventually employ 700 total, once at full capacity.

Medline’s products are available in over 20 countries worldwide and are produced at its more than 20 North American manufacturing sites. They include surgical device reprocessing and production of infection prevention solutions; cardiology, diagnostic and incontinence products; cleansing wipes; lotions; and patient plastics.

It also makes over 200 million healthcare procedure kits annually, and operates more than 50 distribution centers in North America, giving it 28 million square feet of medical-grade warehouse space. Additionally, its MedTrans fleet of over 1,300 trucks ships products in one day to 99% of the U.S.

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