He listened to people
As president and CEO of NDC, Mark Seitz guided the company through change, challenges and growth. He did so by studying the medical industry, learning from the people in it and keeping their needs uppermost in his mind.
“Mark’s leadership style is very much servant leadership,” says Repertoire Publisher Scott Adams, who called on Seitz as a customer, worked for him during Adams’ tenure there, and followed his career for the magazine. “Once or twice a week he would walk the entire office to talk to everyone. He called this practice ‘watering the plants.’ It made you feel like you were part of something, and your opinion mattered. He genuinely cared for all his employees and made each one feel like the most important person in the room.”
“Mark has a unique talent,” says Bill Sparks, founder of independent rep firms MedTech (now MTMC) and MedPro. “He’s not afraid to talk to others and ask for advice. Many times we’ve had conversations, and he’ll ask me what I think about this and that – even though he probably knows the answer.”
Legal background
Prior to succeeding Jim Stover as president and CEO of NDC in 2005, Seitz spent more than 20 years practicing law. He was an active member of the healthcare section of the Nashville-based law firm Miller & Martin, PLLC, and he served NDC as outside legal counsel following the relocation of ABCO Dealers Inc. to Nashville in 1993. He assisted the organization in its acquisitions of StarLine Dealers and Central Independent Dealers Association (CIDA) in 1996 and 1998, respectively. Seitz served as lead counsel and advisor when National Distribution & Contracting was formed in 1998 as a holding company for distribution cooperatives, contracting and logistics functions and master distribution. The company acquired dental groups American Dental Cooperative (ADC) in 1999 and United Dental Dealers (UDD) in 2003.
He stepped into his leadership role at NDC in 2005 well-prepared, he told Repertoire at the time. “Jim brought me into the fold as lawyer and counselor. I participated in strategic planning sessions, and that made my relationship with the company solid and special. I felt I was part of it.”
Still, taking the leadership role at NDC following 20 years as an attorney was an adjustment. “As an attorney, you guide a transaction or consult on a tax matter or something similar, then move on to your next project,” he said. “There was a beginning, a middle and an end to the work. You were marketing yourself and your individual capabilities and your experience as a professional.”
But in medical distribution, one’s body of work is never over, he said. “If you’re leading a company, whether it’s a manufacturer or distributor, it’s a constant evolution of experience. It’s really a marathon.”
“Where I witnessed his growth was how quickly he engulfed himself in the industry,” says Adams. “Within a year you felt like Mark had been around for 20 years. He is one of the best people persons I have been around, and his ability to ask questions to get to the heart of an issue is second to none.”
Seitz offered NDC members tremendous loyalty and respect, and he led them in ways to become better and stronger as businesses, Adams says. “The year we went from three co-ops to NDC was one of the most challenging in the group’s history. Mark never wavered or shied away from taking the hard phone calls from emotional members who loved their groups and their brands. If Mark hadn’t pushed us and the members through that exercise, I’m not sure NDC would have survived and thrived as it does today.”
“CIDA, Starline and ABCO were all divisions of NDC,” notes Doug Harper, who served as president of NDC Homecare from 2017 to 2020. “However, the members of these groups were all competitors. Mark’s confident leadership, vision and the trust the members had in him resulted in the unified NDC we see today.”
“Mark’s success in handling the transition was an early indicator of the remarkable success he achieved for NDC,” says Ted Almon of Claflin Co., who served as NDC board chair from the time Stover was hired in 1993 until the sale of NDC in 2016 to private equity firm Court Square Capital Partners.
Recapitalization
In February 2010, private equity firm Silver Oak Services Partner LLC led a leveraged recapitalization of NDC in partnership with management, certain existing NDC shareholders and co-investors. In a statement at the time, Seitz said, “This transaction provides liquidity to certain shareholders while providing the company access to capital and a value-added partner.” At the time, NDC was stocking over 20,000 SKUs from approximately 160 manufacturing partners servicing over 600 distributor customers throughout North America.
During Silver Oak’s ownership, NDC completed two acquisitions: MOtion 1 in April 2012, a buying group of distributors serving the physical therapy and rehabilitation market; and Main Street Vaccines in April 2015, a vaccine buying group for physicians. In February 2016, Silver Oak completed the sale of NDC to Court Square Capital Partners. By then, NDC was serving more than 1,400 distributors and nearly 400 healthcare manufacturers, with over 180 employees. Court Square exited NDC in 2021, as it was sold to Platinum Equity.
Says Almon, “All businesses evolve with the times and external circumstances, and any company’s ability to survive and grow depends upon its ability to adapt to changing conditions. Mark was able to discern changes in the market and to adapt NDC’s offering to the changing needs of the customers. He was aware that the original co-op business model, serving exclusive territories, was fast becoming obsolete. He was able to convince his Board and a sufficient number of members that the equity structure of the company as well as the profile of its membership needed to change.
“The surviving member companies weren’t the biggest, but rather, they were those who found sustainable niches in a market dominated by mammoth, vertically integrated firms with access to public markets. He was able to swiftly adapt NDC’s product and service offering to match the changing customer focus and not only survive but enjoy vigorous growth under the ownership of investors rather than customers.”
Rebranding
In 2012 Seitz began a strategic planning initiative for NDC. “We decided we wanted to have a hand on the tiller of our own destiny, as opposed to just reacting to changes,” he told Repertoire in 2015. The result was a rebranding initiative, which was completed in 2015. The key lay in the organization’s new tagline: “Delivering Efficiency to Healthcare.”
Responding to demands in the market, NDC explored new ways to produce efficiencies not only for its traditional distributor members, but for all key constituencies, i.e., distributors, manufacturers, GPOs and, by extension, healthcare providers. NDC intended to transform itself into a healthcare supply chain company providing customized solutions to all players in the supply chain.
“You cannot purposefully go anywhere without knowing where you want to go and identifying a means to get there,” he says today. “To me, that is the essence of strategic planning. To the best of its ability, a business needs to be intentional about its performance as opposed to reactive. Disciplined strategic planning gives you the best chance to be intentional.”
COVID
Seitz’s industry acumen, confidence and strong leadership was never more evident than during the COVID pandemic, says Doug Harper. He quotes one NDC team member who said, “I will always be grateful to Mark for his ‘checking in’ calls and emails during the pandemic. Knowing that our CEO cared enough to check on me personally meant more than he will ever know.”
Speaking with Repertoire one year after COVID struck, Seitz noted that despite widespread fear, “at the height of the pandemic, I had people beating down the door of our distribution centers to come to work and do their job, to serve our customers. It was really something to see.
“We had another mission too. Besides just supporting healthcare, our model supports many small businesses, and they all have employees and families and customers who depend on them to stay open. It was gratifying to fulfill our duty to the best of our ability under the circumstances, including allocations and shortages.
“Just going through the pandemic and having to make real-time decisions in unknown territory has shown me how much I depend on my team,” he said at the time. “NDC team members come from diverse backgrounds and diverse professional experiences. I’ve got experience capital from all these wonderful people that I’ve had a chance to work with at NDC and in the industry. I make sure that I don’t ever get in a place where I think I know the answer to anything or everything. I wake up every day determined to listen.”
Independent distribution: A culture
“Mark’s unwavering commitment to fostering a spirit of collaboration and support within the industry truly sets him apart,” says NDC President and CEO Jack Stephens. “He was never simply a CEO; he was a mentor, a confidant, and a genuine friend to all who knew him. His door was always open, his advice freely given, and his willingness to help boundless.
“Mark’s passion for the independent channel is infectious,” he continues. “He championed the unique strengths and values that independently owned specialty distributors bring to the table, advocating tirelessly for their continued success. He understood the vital role they play in ensuring a healthy and competitive marketplace, and he dedicated himself to empowering them to thrive.
“He leaves behind a community of inspired leaders, all carrying forward the passion for collaboration, mentorship, and unwavering passion for healthcare distribution. We are all richer for having known him, and his spirit will continue to guide us as we navigate the future of our industry.”
“I firmly believe that there is tremendous opportunity for independently owned/specialty distribution businesses, perhaps even more so now than in 2021,” Seitz says today. “The COVID pandemic exposed wide-ranging fragility in the healthcare supply chain. One of the responses to that fragility within the provider community was to diversify its supply chain partners to create security that comes from having multiple partners. Many specialty distributors are capitalizing on opportunities to serve as secondary suppliers, to ultimately strengthen our supply chain and to protect their relevance in the industry.”
“You cannot have a good culture unless you’re successful, and you cannot be successful unless you have a good culture,” he told Scott Adams in 2021. “For me, it is the way we treat people and build relationships every day. It’s integrity and consistency. Whenever I interview someone, I tell them that the biggest way to get on my bad side is not to speak to our receptionist when you are in our lobby. I know that sounds a little self-righteous, but it’s a metaphor for what’s important to me. It’s about mutual respect.
“Once you develop that culture, you must remember to live it. You must hire and fire by your culture. Unfortunately, I have sometimes fallen short of my own expectations. Nonetheless, you must treat your partners consistent with your culture, while also making sure that the culture contributes to financial success. Ultimately, the responsibility of any leader of a business is to create jobs, support families, and support the trading partners that count on them.
“With the help of many others on the team, NDC has evolved into a unique business that – with integrity – provides a genuine value to distributors, manufacturers, providers and patients on a national scale.”
Sidebar:
NDC acquisitions in 2017 and 2018
2017: Dedicated Distribution (rolled up into Preferred Medical)
2017: Healthcare Supply Solutions (HSS) (rolled up into Preferred Medical)
2018: Preferred Medical
2018: Wolf Medical Supply (rolled up into Preferred Medical)
2018: National Physician Care (vaccine buying group)