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Adventist Health Partners with Premier Inc and Prestige Ameritech to Expand Domestic PPE Production

  • Under the terms of the agreement, Adventist Health 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).
  • Provides Adventist Health 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.

CENTRAL VALLEY — Adventist 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, Adventist Health 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 John Beaman, Chief Business Officer, Adventist Health. “With this long-term agreement, Adventist Health is breaking that cycle to fund domestic alternatives. Not only does this create more diversity in the supply chain, it also helps ensure that our workforce has the supplies needed 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 Adventist Health, we have certainty that allows us to invest in increased production.”

“Adventist 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 Adventist Health’s commitment. Adventist Health deserves recognition for its leadership and real work to bring supplies back home to America.”

The financial terms of the agreement were not disclosed.