In early 2021, Franciscan Alliance, a 12-hospital healthcare system with more than 200 non-acute care sites located throughout Indiana and Northeastern Illinois, was at a crossroads and in need of a new, centralized operations plan.

“We had a lot of variation in supply and services, processes and policy,” said Steve Ellis, vice president of supply chain, Franciscan Alliance. “We recognized that our supply chain was fragmented and inefficient and that we needed to restructure.”

At that time, Medline was not the healthcare system’s primary supplier, although the company had repeatedly come through for Franciscan with much needed supplies during COVID-19.

‘An alignment of mission and values’

“Knee deep during the pandemic, we found that we had a partner in Medline,” said Dawn Thackston, RN, director, value analysis, at Franciscan Alliance. “Medline was with us 24-7. On weekends, nights and evenings, someone would find something for us if we needed it. Medline understood that for us to keep the doors open, to care for patients, we needed masks and other supplies.”

That level of service and commitment is critical for Franciscan Alliance, a healthcare system and ministry with a mission “to care for everyone who comes through our doors.”

In fact, Franciscan Alliance’s RFP for a primary supplier and supply chain logistics vendor specified the need for a partner with shared principles and values.

Thackston said this alignment was reinforced during RFP meetings with leadership at Medline’s Northfield, Illinois headquarters, where a commitment to making “healthcare and each other better; to continue to take care of people” was discussed and emphasized. “Medline’s mission, the vibe and the culture mesh so well with us as a ministry.”

“There’s an alignment of mission and values,” said Ellis. “Medline’s culture and mission in patient care delivery was an important aspect we discussed internally and during our collaborations with the Medline team.  Collectively, we’re not in the supply chain business, we’re in healthcare and we take care of people. We’re focused on the same core principals, the same desired outcomes, and that is important for us.”

Helping to improve efficiencies, standardize operations

Under the new prime vendor agreement, Medline will provide Franciscan Alliance with medical supplies, supply chain solutions, clinical assessments and training across the healthcare system’s entire network.

“We have a large quantity of locations spread out over a large geographic area,” said Ellis. “There’s opportunities for improvement, including third party logistics and warehouse space. We have space in some areas, but we see more efficiency through optimization of off-site warehouse storage with Medline. We’re hoping to find that formula and right mix instead of dealing in bulk at multiple locations.”

Medline’s new customized third-party logistics stockpile management program, called 3PL, places healthcare-system-owned inventory into the company’s distribution center infrastructure, utilizing technology and logistics to provide stockpile visibility and delivery.

Today, 61 healthcare systems are partnering with Medline through the 3PL program, which is supported by the company’s $2 billion, multi-year Healthcare Resilience Initiative (HRI). Since 2018, HRI has resulted in the construction of eight new distribution centers, including one near the Port of Savannah; nearly 150 manufacturing expansion projects; and a new global digital customer ordering platform. Most recently, Medline invested an additional $500 million in medical supply inventory to boost product availability.

The Franciscan Alliance network is served by Medline’s state-of-the-art Jeffersonville, Indiana distribution center and the 1.4 million-square-foot Grayslake, Illinois facility, the largest medical grade distribution center in the U.S.

“It’s so important that we start to standardize and align our operations,” said Steve Hamilton, Franciscan Health administrative director, supply chain logistics. “I’m really confident that Medline can help us get to a place where what is good for our Indianapolis location is good for our Crown Point location, instead of having that regional approach.”

Working together to make healthcare run better

In addition to collaborating with Medline on medical supply, inventory and clinical solutions, the Franciscan team regularly participates in the company’s executive seminars – taught by renowned healthcare industry leaders– that address the industry’s most pressing workforce, financial, patient care and other challenges.

“The Medline Institute offers high-quality educational sessions for growth and leadership development and has adapted these to allow for both in-person and virtual attendance,” said Sarah Burdick, Franciscan Alliance administrative director of strategic sourcing.

Burdick says she has added Medline Institute classes to her team’s annual performance requirements “due to the quality of the programs offered. Most have signed up to attend more than one and I have heard nothing but good feedback regarding both the opportunity and the quality of the classes they have attended.

“I can’t thank Medline enough for this program and the opportunities for my team,” said Burdick.

“Throughout the years, Medline has remained committed to meeting the needs of the Franciscan Alliance with reliable, superior service and strategic solutions,” said Mark Ochall, Medline executive account director. “We look forward to continuing to work closely with Franciscan Alliance’s operations and clinical staffs to optimize operations, product standardization and patient care.”

“In healthcare, the past couple of years have been very difficult,” said Ellis. “We’re going to look at Medline to help improve our operations and to provide advice. We’re going to make each other better.”

Learn more about how Medline tailors solutions across the entire continuum of care as a manufacturer and distributor.