by
Gus Iversen, Editor in Chief | February 12, 2025
Medline's distribution center in Salt Lake City, Utah opened in 2023
Medline has been awarded a major contract by the U.S. Department of Veterans Affairs (VA) to supply medical-surgical products to the Veterans Health Administration (VHA) and other government agencies, making Medline the primary distributor for most VA medical centers.
The five-year contract, estimated to be worth more than $1 billion annually, is part of the VA’s initiative to improve supply chain efficiency and ensure reliable access to medical products. In addition to serving VA hospitals and clinics, Medline’s agreement extends to the Indian Health Service, the Bureau of Prisons, and the Department of Health and Human Services. The VHA, the country’s largest integrated healthcare system, provides care to roughly 9 million veterans through more than 1,300 facilities.
Chris Powers, vice president of government services at Medline and a military veteran, emphasized the company’s commitment to supporting veteran healthcare. “We believe Medline's previous performance, competitive pricing and dedicated team were key factors for this award," he said.
Medline will utilize its extensive distribution infrastructure, which includes 45 distribution centers across the U.S. and a fleet of more than 2,000 MedTrans trucks.
The Northfield, Illinois-based company has a long history of working with federal and state agencies, including the Centers for Disease Control and Prevention, the Federal Emergency Management Agency, state and local health departments, public hospitals, and emergency medical services.
In October, Medline
announced a partnership with Microsoft to enhance the resilience of healthcare supply chains through a new digital solution called Mpower, that will be built on Microsoft 365 and incorporate Azure AI, including Microsoft Copilot, to provide predictive insights and actionable recommendations.
Medline is a leading provider of medical-surgical products and healthcare solutions, operating in over 100 countries. In 2021, investment firms Blackstone, Carlyle, and Hellman & Friedman partnered together to fund a
$34 billion majority investment in the company, making it one of the largest leveraged buyouts since the 2008 financial crisis.
Since then, Medline has announced many vendor partnerships and established facilities to enhance its supply chain efficiencies. Earlier this year,
anonymous insiders said the company may be in the early stages of going public at a $50 billion valuation in 2025.
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