Medline Awarded $5 Million Office and Medical Products Contract for Community Health Systems

Medline Industries, Inc. , the nation's largest privately held manufacturer and distributor of medical supplies, today announced a three-year medical and office supplies purchasing agreement with Community Health Systems (CHS) Homecare. The new contract is expected to generate $5 million in sales for Medline, while CHS is in line to realize a 20% supply cost savings through formulary standardization, operational improvements and ordering oversight technology.

Under the new agreement Medline will provide products to CHS's network of more than 100 homecare, hospice and durable medical equipment locations located in 21 states nationwide. The organization will streamline its supply management by utilizing Medline programs and services focused on formulary management and compliance, utilization review and clinical education .

A major factor in Medline's selection was CHS's strong success with Medline's Focus 600 program for both its homecare and hospice medical supply usage. The program drives ordering efficiencies and cost savings through a carefully selected product formulary that includes the majority of items home health agencies use on a regular basis. Product is delivered directly to patients' homes, prepackaged and ready for the nurse to use, reducing home health agencies' inventory, storage and transportation costs. In fact, a two-year independent study conducted by Legacy Health System in Portland, Ore., showed a 33% reduction in supply costs after switching from bulk purchases to patient-specific purchases .

Focus 600 also helps homecare nurses maximize productivity. Since products are shipped directly to the patient's home, nurses can spend more time caring for their patients. One published study found that switching to Focus 600 enabled agencies to add up to two new referrals per nurse, per week.

About Medline

Medline, the nation's largest privately held manufacturer and distributor of healthcare products, manufactures and distributes more than 100,000 products to hospitals, extended care facilities, surgery centers, home care dealers and agencies and other markets. Headquartered in Mundelein, IL, Medline has more than 800 dedicated sales representatives nationwide to support its broad product line and cost management services.

Over the past five years, Medline has been the fastest growing distributor of medical and surgical supplies in the U.S., serving as the primary distributor to over 250 major hospitals and health care systems. As a leading distributor, Medline offers a comprehensive array of consulting and management services encompassing the supply chain and logistics, utilization and standardization, business tools and enhanced reporting capabilities, and on-staff clinicians.

Medline has a growing network of 34 distribution centers around the country, as well as an expanding, dedicated transportation fleet with over 160 vehicles in a variety of sizes to fit customers' specific delivery needs. The fleet is equipped with the latest navigation devices for enhanced order tracking and communication.

Media Contact: Jerreau Beaudoin (847) 643-3011 John Marks (847) 643-3309