(Photo above: Renewal tools in opened cage | by Medline ReNewal)
Medline Industries, Inc., the largest privately held manufacturer and distributor of healthcare supplies in the country, has its eye on expansion. In September the company began construction at a new site in Redmond. Medline bought Redmond-based Surgical Instrument Services and Savings (dba Medisiss) in 2012 and in February 2015, bought 12.4 acres of land at the Desert Rise industrial area in Redmond with the intent to build a 50,000 square foot building.
The location will maintain the business of reprocessing medical devices under the name Medline ReNewal, which is a wholly owned subsidiary of Medline Industries, LLC.
According to Medline Renewal President Frank Czajka, the company plans to occupy the space by June 2016 and chose to locate to the area because of the talented and experienced workforce and availability of suitable property. “The support of the local and state officials made this a win-win project,” he said.
Medisiss first came to Redmond in 2009 with 25 employees and over five years they expanded to 165 family wage jobs. By 2014 they were one of the largest companies in Redmond but Medisiss was running out of production and warehouse space to accommodate their growth in sales and international demand. Medline purchased Medisiss in 2012 and began looking for a place to expand operations with a larger facility.
“When we learned of their purchase by Medline, we knew that the possibility of relocation or reductions existed as the larger corporation absorbed the company into their portfolio. Losing a company of this magnitude in Redmond would have been extremely detrimental to our local economy. Redmond Economic Development, Inc., put together a team consisting of the City of Redmond, Biz Oregon and REDI to start work immediately on a program to retain the company in Redmond,” said Heather Richards, community director of the City of Redmond.
Headquartered in Mundelein, Illinois, the global manufacturer and distributor’s goal is to help customers across the continuum of care achieve both clinical and financial success. With more than 350,000 products, Medline’s primary products include hospital gloves, scrubs and gowns, wheelchairs, walkers, canes, skin care products and adult incontinence products.
Medline has 12,000 employees worldwide, 17 manufacturing faculties, and 40 distribution centers in North America and 10 overseas. Medline’s innovative products and programs can be found in most healthcare facilities around the world.
Medline ReNewal is a FDA third party medical device reprocessor of single use devices that is committed to patient safety, surgeon satisfaction and FDA compliance. The program focuses on collecting used medical devices and returning them to the healthcare facilities at a substantial savings. The process includes disinfecting, refurbishing, re-assembling, performance testing and ultimately sterilization of used devices. Products are then sold back to healthcare facilities for additional use. The reprocessing strategy allows customers to save on the cost of new device purchases, which helps allocate funds to enhancing the care of patients. Reprocessing reduces medical waste and promotes positive environmental stewardship.
Richards, City Manager Keith Witcosky and others worked with the state, ODOT and other Redmond area officials to make the Desert Rise Industrial Park available for Medline’s expansion. They began raising funds to get sewer, water and road access for Medline at the Desert Rise location. The city received over $1.2 million dollars in grants with large contributions from the Oregon Immediate Economic Opportunity Fund and the state’s Infrastructure Finance Authority which made the project attainable. The ability to keep Medline in Redmond preserved the 165 already existing jobs while adding another 25 and potentially more in the future.
To help retain Medline, the City of Redmond guaranteed $1.3 million in improvements to the medical company’s new. Grants are covering $919,013 of those costs.
“Securing the grants was a collaborative team effort between the City of Redmond, Redmond Economic Development, Inc., and Biz Oregon,” offered Witcosky. “We met with the company to determine their needs and met as a team to determine how we could respond to those needs. Staff from all three agencies worked overtime to gather the necessary information and submit the applications for the funding. Everyone knew how important it was to retain this company in Redmond and Oregon. They are a solid company with demonstrative job growth and family wages.”
“Medline had the option of moving from Redmond to another location or staying here and expanding. The City, REDI, Business Oregon (Regional Solutions) and others pitched in to put together an incentive package for Medline’s consideration. Add to that the fact that Redmond has been a good partner for them over the years, and is a very inviting place for them to find a trained workforce,” said Mayor Endicott.
With the new location focusing on reprocessing, Czajka explained that the process requires the “unique capability and skilled workers in Redmond to provide a highly desirable, quality service to our customers. As demand continues to grow, so will our business. We are excited about the opportunities we’ll be bringing to the community.”
Dan Vukelich, president and CEO of the Association of Medical Device Reprocessors (AMDR), said, “Value-based healthcare is replacing volume-based healthcare with hospitals now more eager than ever for solutions to reduce waste, maximize the value of their purchasing decisions, and promote sustainability. Medical device reprocessing is one of the first programs clinicians employ to dramatically cut care delivery costs while providing their patients with the same standard of care.”
According to the AMDR, since 1997 “medical device reprocessing and the value it provides to healthcare systems has grown tremendously – from a $20 million industry in the U.S. in 2000 to an estimated half billion dollar industry in the U.S. alone today.
Medline was not able to comment on operational details or future plans due to competitive reasons but Czajka acknowledged that this “expansion reinforces our leadership in the medical supply industry. Reprocessing is an important area of our business and we know we will thrive here.”
“The positive growth Redmond is seeing is a product of foresight, land availability and infrastructure, hard work, and a broad set of partners rowing in the same direction,” said Richards. “We have to keep growing and nurturing the jewels of Redmond which exist with these companies. This very intentional approach gives us the best chance for the cluster growth to continue.”
Medline Industries, Inc
2747 SW Sixth St.
Redmond OR 97756
CEO: Charles Mills
Employees: 165 in Redmond
Year established: 1966
Products/Services: manufacturer and distributor of healthcare supplies
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