Genesis Partners Will Expand Domestic PPE Production - Genesis Health System

Published on May 26, 2020

 

Genesis Health System Partners with Premier Inc. And
Prestige Ameritech to Expand Domestic PPE Production

Genesis Health System, Davenport, IA., has partnered with Premier Inc., a leading healthcare improvement company, to acquire a minority stake in Prestige Ameritech, the largest domestic manufacturer of face masks, including N95 respirators and surgical masks.

The Genesis Health System investment represents a long-term strategy to invest in a partner with suppliers that source from multiple regions, as well as domestic markets, to help ensure that a greater proportion of healthcare products are insulated from shortages and are available in times of need.

In addition to the equity investment, Genesis Health System will commit to purchase a portion of all masks it uses annually from Prestige Ameritech for up to six years, inclusive of a three-year renewal option.

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 associated with this overreliance on Asia came into sharp focus earlier this year as the COVID-19 pandemic swept across the globe and these nations closed borders and prevented U.S. access to supplies. This triggered widespread shortages of products needed to protect healthcare workers. In contrast, Prestige Ameritech represents a primarily domestic supply chain, drawing raw materials and production capabilities from the United States. Prestige also does 100 percent of its business with U.S. customers.

“Overreliance on foreign manufacturers is a key reason why we’ve had concerns about the consistency of available PPE supplies at our care sites during the COVID-19 pandemic,” said Doug Cropper, President and CEO, Genesis Health System. “This partnership helps safeguard an uninterrupted supply chain of PPE for Genesis. It will also allow us to prepare in advance for the next outbreak, making greater use of domestic sources of PPE so we are not forced to find new or additional sources, probably at higher cost, in the midst of an outbreak.

“We will also be able to have confidence in the quality of PPE items needed. That hasn’t always been the case in our COVID-19 experience.’’

Lisa Rogalski, Director of Materials Management Genesis Health System, has been working with staff on a daily basis to secure the necessary PPE to provide a safe environment for patients and Genesis staff.

“We have had support from our primary sources but we’ve also had to come up with different sources and unique ideas to acquire adequate supplies,’’ Rogalski explained. “Some of those new sources were local companies, which came through at a difficult time to supply us with face shields, masks and gowns.

“This pandemic has required a global response, but for Genesis, the response also started at a local level with generous partners like Deere, Sears Seating, HNI and all of the volunteers who sewed masks. Everyone came together.’’

“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. “We are ready, willing and able to surge our U.S.-based production and help alleviate the national PPE shortage. With the long-term commitment from Genesis Health System, we have certainty that allows us to invest in increased production.”

“Genesis 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 the commitment from Genesis, and they deserve to be recognized for their leadership and for their real work to bring supplies back home to America.”

Financial terms of the agreement were not disclosed.

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. www.prestigeameritech.com

About Genesis Health System


Genesis Health System, its affiliates and partners, offer a continuum of health care services for a 12-county region of Eastern Iowa and Western Illinois. Our affiliates include: hospital care at Genesis Medical Center, Davenport and DeWitt, Iowa and at Genesis Medical Center, Silvis and Genesis Medical Center, Aledo, Ill.; home health and hospice services through Genesis VNA and Hospice; Genesis Workplace Services, including occupational health, employee assistance program and wellness services for employers and their employees; the Clarissa C. Cook Hospice House; senior living communities; Genesis Health Group, with more than 200 health care providers; the Genesis Quad Cities Family Medicine Residency program; Genesis Psychology Associates; Genesis Convenient Care clinics; and Genesis Home Medical Equipment. Partners include Crow Valley Surgery Center, Bettendorf; Center for Digestive Health, Bettendorf; Spring Park Surgery Center, Davenport; and, Genesis Imaging Centers. Genesis manages Jackson County Regional Health Center, Maquoketa, Iowa. Genesis is one of the largest employers in the Quad Cities region with more than 5,000 employees. For more information, visit our website at www.genesishealth.com.

###