Competitive Bidding Program

For Immediate ReleaseMedicare and Medicaid

Medline Announces Intent to Enter the Centers for Medicare & Medicaid Services New Competitive Bidding Program

Competitive Bidding Program to Utilize Bids to Establish Applicable Payment Amounts Under Medicare Part B

Tuesday, August 07, 2007 —
Mundelein, Ill. – Medline Industries, Inc., the nation’s largest privately held manufacturer and distributor of medical supplies, announced their intent today to enter the enteral nutrition category ONLY of the Centers for Medicare & Medicaid Services (CMS) New Competitive Bidding Program for Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS).


“Medline has been billing Medicare for more than 20 years for its enteral nutrition supplies on behalf of patients in nursing homes across the country, with a significant percentage located in the 10 chosen competitive bidding areas (CBAs). Because CMS did not exclude this sector, we consider it appropriate to attempt to protect our current base of business,” said Tim Dundon, Medline President of HealthCare Sales.
“I have been a Medline customer for many years and I am pleased to say that I worked closely with them during the Polk County Competitive Bidding Demonstration Project. As a successful bidder in the Oxygen, Beds, and Enteral Products categories, I found Medline’s participation in the enteral nutrition category to be a positive experience and there were no negative effects. Medline is a valuable partner that I will continue to do business with in the future,” said Butch Vanderpool, President of Mobility Specialists in Auburndale, Fla.

“We are pleased that Medline has indicated its intent to use a distribution system that includes independent HME Providers if its bid in the initial CBAs is successful. These Providers are the primary and essential front line of home-based care and will be a valuable link in any supply distribution system,” said Ron Bendell, President of VGM & Associates.

About Medline Medline, the nation’s largest privately held manufacturer and distributor of healthcare products, manufactures and distributes more than 100,000 products to hospitals, extended care facilities, surgery centers, home care dealers and agencies and other markets.  Headquartered in Mundelein, IL, Medline has more than 800 dedicated sales representatives nationwide to support its broad product line and cost management services.

Over the past five years, Medline has been the fastest growing distributor of medical and surgical supplies in the U.S., serving as the primary distributor to over 250 major hospitals and health care systems. As a leading distributor, Medline offers a comprehensive array of consulting and management services encompassing the supply chain and logistics, utilization and standardization, business tools and enhanced reporting capabilities, and on-staff clinicians.

Medline has a growing network of 34 distribution centers around the country, as well as an expanding, dedicated transportation fleet with over 160 vehicles in a variety of sizes to fit customers’ specific delivery needs. The fleet is equipped with the latest navigation devices for enhanced order tracking and communication.