Medline Industries#Curad
{{Short description|American healthcare company}}
{{Infobox company
| name = Medline Industries, LP
| logo = Medline-logo.svg
| logo_size = 200px
| logo_caption = Medline Industries logo
| type = Private
| foundation = {{Start date and age|1966}}
| location = Three Lakes Drive
| hq_location_city = Northfield, Illinois
| hq_location_country = United States
| key_people = {{Unbulleted list|Jim Boyle (CEO)|Jim Pigott (President)|Jim Pigott (COO)}}
| industry = Health Care
| revenue = {{profit}} {{US$|$21.2 billion|link=yes}} (2022)
| products = Medical and surgical supplies
| homepage = {{official URL}}
}}
Medline Industries, LP is an American private healthcare company headquartered in Northfield, Illinois. In June 2021 it was acquired by a consortium of private equity firms Blackstone, Carlyle and Hellman & Friedman valuing the company at $34 billion in one of the largest leveraged buyouts of all time.{{Cite news |last=Gottfried |first=Cara Lombardo and Miriam |date=2021-06-05 |title=WSJ News Exclusive {{!}} Private-Equity Group Reaches Deal to Buy Medline for Over $30 Billion |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/group-including-blackstone-nears-deal-to-buy-medline-for-over-30-billion-11622910788 |access-date=2022-04-02 |issn=0099-9660}}{{Cite web |title=Quick take: Medline set to join ranks of all-time largest leveraged financings |url=https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/quick-take-medline-set-to-join-ranks-of-all-time-largest-leveraged-financings-66682183 |access-date=2022-04-02 |website=www.spglobal.com |language=en-us}} It is the nation's largest privately held manufacturer and distributor of medical supplies providing products, education, clinical programs and services across the continuum of care with operations in over 125 countries and territories.{{cite web|url=https://www.forbes.com/companies/medline-industries/|title=Medline Industries on the Forbes America's Best Employers List|website=Forbes }}
In 2022, Medline had sales of $21.2 billion.{{Cite web |title=About Medline |url=https://www.medline.com/about-us/fast-facts/ |access-date=2022-04-02 |website=Medline Newsroom |language=en-US}} Medline is ranked at #15 on the Forbes 2022 list of largest privately held companies in America and employs over 35,000 people.{{cite web |title=Blackstone, Carlyle and Hellman & Friedman to Invest in Medline |date=5 June 2021 |url=https://www.blackstone.com/news/press/blackstone-carlyle-and-hellman-friedman-to-invest-in-medline/}}
History
In 1910, A.L. Mills established the Northwestern Garment Factory making aprons for stock yards.{{cite web|url=https://www.medline.com/pages/about-us/our-history/|title=Our History|website=medline.com}} In 1912, A.L. Mills established Mills Hospital Supplies Inc., making surgical gowns and nurses uniforms for hospitals. In the 1920s, A.L.’s son, Irving, took over the business and began distributing general medical supplies in addition to the garments. In 1961, Irving sold the company to Cenco. In 1966, A.L.’s grandsons Jim and Jon Mills left Cenco and founded Medline with approximately 12,000 square feet of warehouse space and one loading dock in Evanston, IL. In 1968, Medline opened its first textile manufacturing facility in Covington, Ind. In 1972, Medline opened its first non-textile manufacturing division (Dynacor) with the purchase of an injection molding company.
In 1995, Medline opened its first facility for assembling Sterile Procedure Trays (SPT) in Waukegan, IL. In 1996, Medline entered the distribution business. In 2001, Medline started manufacturing private label wound care products for CVS, Walgreens, Target, Dollar General and Family Dollar.
In April 2007, Medline acquired the {{anchor|Curad}}Curad brand of first-aid products, from Beiersdorf, entering the retail market.{{cite web|url=http://nursing.advanceweb.com/Article/Medline-Acquires-First-Aid-Brand-Curad.aspx|title=Medline Acquires First Aid Brand Curad|website=nursing.advanceweb.com|archive-url=https://web.archive.org/web/20081011034811/http://nursing.advanceweb.com/Article/Medline-Acquires-First-Aid-Brand-Curad.aspx |archive-date=2008-10-11 }}{{cite web |title=About Us |url=https://curad.com/about-us/ |website=Curad Bandages Official Site |access-date=10 April 2023}}{{cite web |url=http://annualreport.beiersdorf.com/2007/en/group-management-report/results-of-operations-business-segments.html |title=Beiersdorf Annual Report 2007: Results of Operations – Business Segments |access-date=2009-07-06 |url-status=dead |archive-url=https://archive.today/20120701120217/http://annualreport.beiersdorf.com/2007/en/group-management-report/results-of-operations-business-segments.html |archive-date=2012-07-01 }} The Curad brand includes products such as bandages, surgical tape, and liquid bandage.{{cite book|title=Super Market Merchandising|date=1953|publisher=Super Market Publishing Company}}
In 2009, Medline Launched Generation Pink exam gloves to help raise breast cancer awareness and turned the original Pink Glove Dance video into a viral breast cancer awareness campaign, reaching 14+ million people. In 2011, Medline introduced BioMask, the first-ever FDA-cleared antiviral medical facemask shown to inactivate flu viruses.
Today, Medline Industries, LP offers over 550,000 medical products and clinical solutions to hospitals, extended care facilities, surgery centers, physician offices, home care agencies and providers, and retailers. Its 35,000+ employees extend to over 125 countries and territories (such as USA, Canada, Mexico,{{cite web|url=http://elmanana.com.mx/noticia/62361/Amplia-Medline-planta-en-Oradel-NuevoLaredo.html|title=Amplía Medline planta en Oradel}} Spain, Germany, United Kingdom, France, Italy, Japan, Australia and New Zealand) and include clinicians, researchers, engineers, financial experts and 2,000 direct sales representatives.{{Cite web |date=August 3, 2016 |title=Our Company |url=https://www.medline.com/pages/about-us/our-company/ |website=Medline}} Medline operates over 50 distribution centers across North America.
In June 2023, it announced Jim Boyle as its next CEO, effective Oct. 1, 2023.{{Cite web |last=Staff |first=Medline Newsroom |date=2023-06-28 |title=Medline announces leadership transition naming new CEO and President & COO |url=https://newsroom.medline.com/company-news/medline-announces-leadership-transition-naming-new-ceo-and-president-coo/ |access-date=2023-07-03 |website=Medline Newsroom |language=en-US}}
False Claims Act Suit
In October 2007, former employee, Sean Mason, filed a qui tam suit on behalf of the United States against Medline alleging the company violated the False Claims Act and the Illinois Whistleblower Reward and Protection Act by: 1) providing bribes and kickbacks to healthcare providers; 2) fraudulently inducing the Federal government to agree to improper tracking customers in procurement contracts and then giving below-government pricing to those tracking customers; and 3) overbilling the Federal government's mail-order pharmacy program.{{Cite web |date=February 18, 2010 |title=Sean Mason, et al., v. Medline Industries, Inc., et al.,, No. 1:2007cv05615 - Document 120 (N.D. Ill. 2010) |url=https://law.justia.com/cases/federal/district-courts/illinois/ilndce/1:2007cv05615/213398/120/}}
The complaint remained under seal pending a determination by the U.S. Government and the State of Illinois to intervene and proceed with the case. Both declined to do so.
After a court dismissed the first amended complaint, Mason filed a second amended complaint that focused on claims that Medline used a wide array of kickbacks and bribes to solicit business from healthcare providers. Mason claimed these kickbacks were falsely labeled as "rebates," and that Medline paid expensive gifts and made charitable donations to solicit business.
In 2011, Medline settled the case for $85 million, with Mason receiving $23.4 million.{{Cite web |date=March 11, 2011 |title=Medline settles kickback case for $85 mln |url=https://www.reuters.com/article/2011/03/12/medline-kickback-settlement-idUSN1120850920110312/ |website=Reuters}}
Ethylene Oxide Litigation
Ethylene Oxide ("EtO"), is used to sterilize medical equipment but is also classified as a known carcinogen.{{Cite web |date=2015-03-20 |title=Ethylene Oxide - Cancer-Causing Substances - NCI |url=https://www.cancer.gov/about-cancer/causes-prevention/risk/substances/ethylene-oxide |access-date=2025-03-21 |website=www.cancer.gov |language=en}} According to the Environmental Protection Agency ("EPA"), in 2017 Medline released 2,863 pounds of EtO.{{Cite web |title=Medline, Vantage ethylene oxide emissions caused cancer, lawsuits claim {{!}} MedTech Dive |url=https://www.medtechdive.com/news/medline-vantage-ethylene-oxide-emissions-caused-cancer-lawsuits-claim/561963/?form=MG0AV3 |access-date=2025-03-21 |website=www.medtechdive.com |language=en-US}} Medline received a permit from the Illinois EPA to construct controls to reduce EtO emissions to below 150 pounds per year.{{Cite web |last=US EPA |first=REG 05 |date=2019-02-20 |title=Ethylene Oxide Emissions: Frequent Questions |url=https://www.epa.gov/il/ethylene-oxide-emissions-frequent-questions#:~:text=Medline%20has%20developed%20a%20plan%20to%20enhance%20its,permit%20to%20construct%20improved%20controls%20at%20the%20facility. |access-date=2025-03-21 |website=www.epa.gov |language=en}}
In 2019, four Lake County individuals filed suit against Medline alleging that the company's release of EtO caused their respective cancers and accusing Medline of not taking sufficient steps to reduce its EtO emissions.{{Cite web |last=Coleman |first=Emily K. |date=2019-08-30 |title=4 Lake County residents sue Medline, Vantage over ethylene oxide emissions; attorney says ‘many more lawsuits’ are coming |url=https://www.chicagotribune.com/2019/08/30/4-lake-county-residents-sue-medline-vantage-over-ethylene-oxide-emissions-attorney-says-many-more-lawsuits-are-coming/ |access-date=2025-03-21 |website=Chicago Tribune |language=en-US}} Additional plaintiffs filed lawsuits alleging harm from Medline's EtO emissions, including birth defects and miscarriages in addition to cancer. It was discovered that Medline sought to settle the lawsuits in 2023 when it filed suit against insurance companies, National Union Fire and Marine Insurance Company and National Union Fire Insurance Company of Pittsburgh.{{Cite web |last=Bilyk |first=Jonathan |title=Medline nearing deal to settle EtO lawsuits, but accuses insurers of standing in the way |url=https://cookcountyrecord.com/stories/651050507-medline-nearing-deal-to-settle-eto-lawsuits-but-accuses-insurers-of-standing-in-the-way |access-date=2025-03-21 |website=Cook County Record |language=en}} In its suit, Medline asserted that it was seeking to settle the litigation but that the aforementioned insurance companies refused to honor their indemnity obligations.{{Cite web |title=Medline Complaint against National Fire and Marine Insurance and National Union Insurance Company of Pittsburgh |url=https://s3.amazonaws.com/jnswire/jns-media/99/c7/13721241/2023CH08965.pdf |access-date=21 March 2025}}
The 2023 suit was not the first issue Medline had with an insurance carrier concerning the EtO litigation. In 2022, an appeals court ruled that a Chicago insurer did not have to cover Medline against litigation alleging damages from the company's EtO emissions because the policy did not begin (in 2008) until after the alleged EtO emissions began (in 1994).{{Cite web |last=Churney |first=Dan |title=Appeals panel: No obligation for insurer to cover Medline vs ethylene oxide lawsuits; emissions began before policy |url=https://cookcountyrecord.com/stories/621312807-appeals-panel-no-obligation-for-insurer-to-cover-medline-vs-ethylene-oxide-lawsuits-emissions-began-before-policy |access-date=2025-03-21 |website=Cook County Record |language=en}}
As of early 2025 the litigation is still pending as no formal settlement or resolution has been announced by the parties.
Labor relations
In over 50 years of doing business, Medline has had several charges filed against it with the National Labor Relations Board.{{cite web |url=https://www.nlrb.gov/search/all/medline%20 |title=Search results |website=www.nlrb.gov |access-date=November 5, 2016}} In late September 2015, Medline terminated a warehouse operator at its Shepherdsville, Kentucky, distribution facility. The terminated employee alleged that Medline terminated him due to his alleged protected labor organizing activities.{{cite web |url=https://www.nlrb.gov/case/09-CA-160614 |title=NLRB-160614 |website=www.nrlb.gov |access-date=November 5, 2016}}{{cite web |url=https://www.nlrb.gov/case/09-CA-166472 |title=NLRB-166472 |website=www.nlrb.gov |access-date=November 5, 2016}} Medline settled with this employee for $15,000 on condition that the employee not return to work.
References
{{Reflist}}