Banner Health partners with Premier Inc. and Prestige Ameritech to expand domestic PPE production
Provides Banner with an additional US-based supplier of PPE needed to protect healthcare workers
PHOENIX (May 26, 2020) – Banner Health 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.
In addition to the equity investment, Banner 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 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.
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 care sites across the country during the COVID-19 pandemic,” said Dennis Laraway, Banner’s chief financial officer.
“With this long-term agreement, Banner is breaking that cycle to fund domestic alternatives,’’ he said. “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.”
“We are ready, willing and able to surge our U.S.-based production and help alleviate the national PPE shortage,’’ said Dan Reese, Prestige Ameritech co-founder and CEO. “With the long-term commitment from Banner, we have certainty that allows us to invest in increased production.”
“Banner Health 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 Banner’s commitment. Banner 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 Banner Health
As one of the largest nonprofit health care systems in the country, the team at Banner Health is committed to ensuring all Banner locations are a safe place for care. Headquartered in Phoenix, Banner Health owns and operates 28 acute-care hospitals and an array of other services, including: Banner Imaging, Banner Telehealth and Banner Urgent Care. Team members are dedicated to protecting the health and safety of patients, be it a routine checkup, elective surgery or an urgent health service. Waiting room and employee workstation layouts maintain proper social distancing; screenings are conducted at hospital entrances to verify that all employees and visitors are well; and, all Banner physicians are equipped to visit patients remotely. Learn more about Banner's commitment to safety at bannerhealth.com/safecare.
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.