- Under the terms of the agreement, UHS commits to purchase N95 and surgical masks from Prestige Ameritech, the nation’s largest domestic producer of face masks, as well as other personal protective equipment (PPE).
- Investment provides UHS with an additional, U.S.-based supplier of PPE needed to protect healthcare workers caring for patients with COVID-19.
- Move represents a long-term strategy to support diverse and domestic suppliers, ensuring that a greater proportion of these products are produced in America and will be available in times of need.
King of Prussia, PA, May 26, 2020 — Universal Health Services (NYSE: UHS) 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.
In addition to the equity investment, UHS will commit to purchase a portion of all masks they use 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% 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, triggering 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% 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 care sites across the country during the COVID-19 pandemic,” said Marc D. Miller, President, UHS. “With this long-term agreement, UHS is breaking that cycle to fund domestic alternatives. Not only does this create more diversity in the 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. “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 UHS, we have certainty that allows us to invest in increased production.”
“UHS 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 UHS’ commitment. UHS deserves recognition for their leadership and for their real work to bring supplies back home to America.”
The financial terms of the agreement were not disclosed.
About Universal Health Services
One of the nation’s largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, annual revenues were $11.4 billion for 2019. In 2020, UHS was again recognized as one of the World’s Most Admired Companies by Fortune; ranked #281 on the Fortune 500; and in 2017, listed #275 in Forbes inaugural ranking of America’s Top 500 Public Companies.
Our operating philosophy is as effective today as it was 40 years ago, enabling us to provide high-quality care to our patients and their loved ones. Our strategy includes building or acquiring hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.
Headquartered in King of Prussia, PA, UHS has 90,000 employees and through its subsidiaries operates 26 acute care hospitals, 328 behavioral health facilities, 42 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 37 U.S. states, Washington, D.C., Puerto Rico and the United Kingdom. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT). For additional information on the Company, visit our web site: https://www.uhsinc.com.