McLaren partners with companies to expand PPE production

McLaren Health Care announced today that it has partnered with Premier, Inc., a leading healthcare improvement company, to acquire a minority stake in Prestige Ameritech, the largest domestic manufacturer of PPE products, including N95 respirators and surgical masks.

In addition to the equity investment, McLaren will purchase at least 15 percent of all respirators and masks they use annually from Prestige Ameritech at competitive prices for a minimum three-year term. After three years, contracts will be reviewed and renegotiated by Premier to ensure market competitive prices. McLaren will have the option to renew its contract for an additional three-year term.

PPE products critical for the daily operations of health systems are overwhelmingly sourced overseas, with approximately 80 percent coming from China and Southeast Asia. The risks of this overreliance on Asia came into sharp focus as COVID-19 swept across the globe and these nations closed borders and prevented U.S. access to supplies, triggering widespread shortages of PPE needed to protect healthcare workers and patients. In contrast, Prestige Ameritech represents a domestic supply chain, with production completed in the United States. Prestige also sells 100 percent of its products to U.S. customers.

“Overreliance on foreign manufacturers is a key reason why we’ve had such pervasive shortages of PPE during the COVID-19 pandemic,” said David Bueby, Vice President – Supply Chain for McLaren.  “With this long-term agreement, McLaren is breaking that cycle to fund domestic alternatives. Not only does this create more diversity in the overall supply chain, but it also helps ensure that our workforce has the supplies they need to stay safe, healthy and able to provide quality care for the patients that count on us.”

“As COVID-19 proves, the United States is almost completely at the mercy of foreign nations for vital supplies,” said Dan Reese, Prestige Ameritech co-founder and CEO. “Diverse and on-shore manufacturing of critical healthcare products is clearly a national security issue. With this agreement, we have long-term, multi-year commitments that give us certainty and allow us to dedicate our resources to increase production. Not only does that help us today with COVID-19, but long-term commitments also create economies of scale for when we return to business as usual.”

“McLaren is a true innovator, as they are the first to step up and commit to funding the long-term domestic manufacturing of healthcare products,” said Premier, Inc. President Michael J. Alkire. “This agreement and the added domestic supply it enables would not be possible without McLaren’s commitment. McLaren deserves recognition for their leadership and for their work to bring manufacturing back home to America.”

The financial terms of the agreement were not disclosed.

About McLaren Health Care

McLaren Health Care, headquartered in Grand Blanc, Michigan, is a fully integrated health network committed to quality, evidence-based patient care and cost efficiency. The McLaren system includes 14 hospitals, ambulatory surgery centers, imaging centers, a 490-member employed primary and specialty care physician network, commercial and Medicaid HMOs covering more than 550,000 lives in Michigan and Indiana, home health, infusion and hospice providers, pharmacy services, a clinical laboratory network and a wholly owned medical malpractice insurance company. McLaren operates Michigan’s largest network of cancer centers and providers, anchored by the Barbara Ann Karmanos Cancer Institute, one of only 51 National Cancer Institute-designated comprehensive cancer centers in the U.S.  McLaren has 26,000 employees and more than 90,000 network providers throughout Michigan and Indiana. Learn more at www.mclaren.org.

About Premier Inc.

Premier Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of more than 4,000 U.S. hospitals and health systems and approximately 175,000 other providers and organizations to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier enables better care and outcomes at a lower cost. Premier plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier’s news and investor sites on www.premierinc.com; as well as Twitter, Facebook, LinkedIn, YouTube, Instagram and Premier’s blog for more information about the company.

 About Prestige Ameritech

Prestige Ameritech is a designer and manufacturer of disposable medical devices and the automated machinery that produces them. The company is the United States’ largest domestic surgical mask manufacturer. Prestige Ameritech sells ProGear® branded surgical masks, N95 respirators, and other products. It also manufactures medical products for other medical companies. Prestige Ameritech’s headquarters and 220,000 square foot manufacturing facility are located near Fort Worth, TX.

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