PHS was early entrant in stockless purchasing
Medline Industries’s acquisition of Temecula, Calif.-based Professional Hospital Supply in February brings Medline more than 50 sales representatives and a strong custom procedure tray business on the West Coast. PHS, a distributor of medical and surgical supplies, will continue to operate in Temecula under the PHS name as a Medline subsidiary.
“The custom sterile and non-sterile procedure business is a very important and growing product category for both Medline and PHS, and we view the CPT category as a major growth area for us for years to come,” says David Greenberg, executive vice president of strategy for Medline.
PHS provides products to ambulatory surgery centers, physician offices, and extended care facilities tied to IDNs. Its service area includes California, Nevada, Arizona, Colorado, Idaho and Utah. The company has warehousing and distribution facilities in Temecula; Fairfield Calif.; Phoenix, Ariz.; Aurora, Colo.; Nampa/Boise, Idaho; and Salt Lake City, Utah. It renovated and expanded its custom packaging facility in Temecula in 2010.
In addition to purchasing the company, Medline acquired its corporate headquarters and CPT facility in Temecula, says Greenberg. “We did this to demonstrate our commitment to our new colleagues. In fact, we are planning additional investment in technology, distribution assets, inventory and human capital to enhance customer experience and service.”
Founded in 1981 by John Hoffee, PHS was an early entrant into the stockless purchasing arena. Following Hoffee’s retirement, his daughter, Jenise Luttgens, became president. She will remain involved in an executive consulting role for at least a year. John Abele, PHS’s vice president of sales, “is an important member of our executive team and we expect him to have a long career at Medline,” adds Greenberg.
“Like much of the United States, the Western U.S. has seen significant consolidation and vertical integration over the last 10 to 15 years,” continues Greenberg. “However, we believe our ability to service the continuum of care within these health systems provides a tremendous opportunity for Medline and PHS.”
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