Manufacturers race to fill gap following Medline exit

YARMOUTH, Maine – Medline’s decision to voluntarily recall all Medline-brand beds and exit that market has triggered a scramble among manufacturers and home medical equipment (HME) providers, creating what’s expected to be months of elevated demand and potential supply constraints.

The company's exit applies to home care, bariatric and long-term care beds, as well as associated pendants, accessories, replacement parts and bed-containing order packages.

Medline has not disclosed how many products are affected, but the U.S. Food and Drug Administration lists 771,127 affected units – “a massively huge number,” says Peter Loope, president of Graham-Field.

“Every manufacturer is going to be very busy,” he said. “My guess is there is going to be six months of demand – at minimum – to fill this void. It will be an issue that runs through spring.”

Moving quickly to meet demand

Manufacturers say they moved quickly to respond following Medline’s announcement.

Drive Medical says it has accelerated manufacturing, expanded distribution capabilities and increased inventory commitments to help ensure product availability. The company also expects additional inventory to become available beginning in mid-November, supported by a new distribution center in Savannah, Ga.

“Every delay in access to critical equipment, ultimately, affects patient care,” said Derek Lampert, CEO, Drive Medical, in a statement to HME News. “That’s why we took immediate action to expand manufacturing and distribution capabilities, helping ensure providers have the products they need to serve patients and residents without interruption.”

For manufacturers with domestic production capabilities, the sudden surge in demand may create fewer challenges.

With four production facilities in the United States, Graham-Field says it can more easily increase output through additional shifts and extended operating hours.

“Our advantage is we’re building domestically, so there isn’t going to be six weeks on a boat,” Loope said. “We’ve talked to a number of importers and they’re sold out – they don’t have a bed on the shelf – and they’re quoting 10 to 12 weeks out.”

Loope says Graham-Field’s biggest constraint is obtaining certain imported raw materials like the circuit boards used in bed systems.

“Those are things that we’re actively working on with our suppliers to get in on a timely basis,” he said.

Looking beyond the recall

While manufacturers focus on meeting immediate demand, some believe the recall could also change how providers evaluate beds in the future.

Loope expects providers to place greater emphasis on product quality, safety and risk mitigation going forward. He points to compliance with the voluntary IEC 60601 standard as one way that manufacturers can differentiate themselves beyond price alone.

Also, Loope says low reimbursement rates have long forced manufacturers and providers to focus on cost, creating what he describes as a "race to the bottom." He believes the recall could prompt some providers to place greater value on quality and availability by offering higher-end beds through cash-pay channels.

“Everyone has been struggling to get down to those Medicare reimbursement rates and give providers the opportunity to be successful,” he said. “But customers are no longer objecting to spending extra money for something that’s quality and that they can get immediately.”