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.[2][3] 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.[4]
In 2022, Medline had sales of $21.2 billion.[5] Medline is ranked at #15 on the Forbes 2022 list of largest privately held companies in America and employs over 35,000 people.[4][6]
History
In 1910, A.L. Mills established the Northwestern Garment Factory making aprons for stock yards.[7] In 1912, A.L. Mills established Mills Hospital Supplies Inc., making surgical gowns and nurses uniforms for hospitals.[7] In the 1920s, A.L.’s son, Irving, took over the business and began distributing general medical supplies in addition to the garments.[7] 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.[7] 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.[7] 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 1994, Tyco Healthcare purchased the Kendall Company.[12] In 2007, Tyco Healthcare spun off Covidien.[12]
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,[13] Spain, Germany, United Kingdom, France, Italy, Japan, Australia and New Zealand) and include clinicians, researchers, engineers, financial experts and 2,000 direct sales representatives.[14] Medline operates over 50 distribution centers across North America.[2]
In June 2023, it announced Jim Boyle as its next CEO, effective Oct. 1, 2023.[15]
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 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.[16]
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.[17]
Labor relations
In over 50 years of doing business, Medline has had several charges filed against it with the National Labor Relations Board.[18] 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.[19][20] Medline settled with this employee for $15,000 on condition that the employee not return to work.[20]
