AdventHealth, Medline ink unique partnership to expand supply chain resiliency

Three years after COVID-19 emerged and began impacting the global supply chain, many industries, including health care, are still dealing with the impacts of the supply chain disruption. Like other health systems, AdventHealth has taken many measures to ensure the continuity of its supply chain so that its team members have what they need to provide exceptional whole-person care to patients. Some of these measures include utilizing multiple manufacturers and diversified suppliers, increasing its focus on domestic and near-shore production and partnering with other health systems to create a more robust supply chain. Now the health system is embarking on a unique partnership with Medline, the industry leader in health care supplies manufacturing and distribution across the full continuum of care, to create a comprehensive solution that will ensure supply chain resiliency.

“This endeavor with Medline goes well beyond a traditional partnership and brings together the diverse capabilities of a large national health system and an industry partner to create a more resilient supply chain that allows for better patient outcomes and optimized costs,” said Paul Rathbun, senior executive vice president and chief financial officer for AdventHealth. “Working with Medline provides a deep logistics network to ensure resiliency, while also allowing for AdventHealth to own and manage inventory.”

Through a multi-faceted partnership, AdventHealth and Medline will leverage each organization’s strengths to bolster a healthy supply chain, allowing AdventHealth to own its inventory and distribution strategy and create a structure to accommodate future growth.

Additional benefits to AdventHealth include the ability to purchase equipment and assets with Medline’s buying power and access Medline’s distribution network in the event of an emergency. In turn, the long-term mutual commitments and investments of both organizations will create an environment of enhanced collaboration and innovation, while addressing risk mitigation and strengthening supply chain capabilities. Together, AdventHealth and Medline will achieve greater impact by focusing on a strong, truly integrated partnership in areas beyond price and volume.

As part of the partnership, AdventHealth will continue to utilize Medline as its prime vendor distributor for all medical and surgical supplies throughout its network of more than 50 hospitals and additional care sites in nine states.

The partnership also assumes the co-development of a 300,000-square-foot AdventHealth Consolidated Service Center (CSC) currently under construction in Central Florida. The CSC will contain supplies for AdventHealth’s hospitals and care sites throughout Florida to ensure product availability for patient care. The two organizations will co-operate the CSC using a blended staffing model, which includes AdventHealth and Medline team members. In addition, Medline will utilize the 250,000-square-foot space adjacent to the CSC for non-AdventHealth inventory. The CSC is expected to be completed in early 2024.

“Building on our longstanding partnership with the AdventHealth team and leveraging Medline's substantial expertise in real estate and construction, as well as distribution and transportation operations, together we crafted a cohesive supply chain solution to best meet the future needs of their providers and patients,” said Jim Abrams, chief operating officer for Medline. “I firmly believe that these steps demonstrate the value and impact of a highly integrated partnership, where we will consistently challenge the limits of supply chain operations and pioneer innovative frameworks for enhancing future supply chain resilience.”