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Medline to oversee Hoag's supply chain needs in $200 million, multiyear partnership

by John R. Fischer, Senior Reporter | October 17, 2022
Business Affairs Parts And Service
Hoag has chosen Medline to be its prime supply chain vendor. (Photo courtesy of Hoag Memorial Hospital Presbyterian)
Hoag Memorial Hospital Presbyterian has chosen Medline to be its prime supply chain vendor as part of a $200 million, multiyear partnership.

Medline will provide supplies and solutions for the Newport Beach healthcare system’s acute and nonacute care network for the Orange County community in California. Hoag employs 1,800 physicians in 15 urgent care facilities, 10 health and wellness centers, and two hospitals.

A full-time analyst and customer service specialists will address specific caregiver needs and develop ways for optimizing care. Hoag will be able to monitor metrics such as item utilization, contract compliance, price accuracy and spend per product, with Medline’s advanced analytics platform.

“Medline’s dedication to its trade, combined with its infrastructure investments and ability to scale, gives us great confidence in them as a partner for today, as well as one that can help position Hoag for continued excellence in the years to come,” Binh Pham, executive director of supply chain operations at Hoag, said in a statement.

Medline will service the provider from its state-of-the-art, nearly 1.1 million square-foot distribution center in Rialto, California. The two will strategize on improving Hoag’s supply chain operations, patient outcomes and clinical efficiencies, and participate in multiple clinical programs, including Medline’s ReNewal device reprocessing and PeriOp Performance Program.

Earlier this year, Hoag ended its nine-year merger with Providence after filing a lawsuit in 2020 that claimed that Providence did not fulfill its population health obligations and impeded Hoag’s ability to make decisions locally.

Hoag has since gone about investing in its growth, accepting a $106 million donation in September 2022 that will go toward expansion and innovation needs, as well as research and “comprehensive, compassionate” patient care, according to The Orange County Register.

The donation was made by the estate of Audrey Steele Burnand and is the largest ever made out to the provider.

That same month, Medline invested $500 million to increase the availability and timely delivery of medical supplies, bringing total on-hand inventory value to more than $4 billion and alleviating ongoing supply chain challenges.

“By partnering to become an extension of their teams, we strive to truly understand their operational goals, to best leverage our extensive network of resources and expertise,” said Sherry Yeom, Medline vice president of sales.

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