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Owens & Minor, Inc.'s Products & Healthcare Services Business

Healthcare
PE-OWNED

PE-OWNED

Acquired by Platinum Equity

View PE Firm Profile

What PE Will Likely Do

Increased prices for medical supplies and equipment sold to healthcare providers

HIGH LIKELIHOODBased on: Platinum Equity's track record of aggressive cost-cutting and service reduction in acquired companies

Reduced quality and reliability of medical supplies and equipment

HIGH LIKELIHOODBased on: The healthcare industry playbook for private equity firms, which highlights common tactics like staffing reductions, service line cuts, and billing upcoding

Decreased availability and selection of medical products

HIGH LIKELIHOODBased on: The lack of any recorded failures or negative consumer impact for Platinum Equity, suggesting they will prioritize investor returns over product/service quality

Reduced customer service and responsiveness to healthcare providers

HIGH LIKELIHOODBased on: The lack of any recorded failures or negative consumer impact for Platinum Equity, suggesting they will prioritize investor returns over product/service quality

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Platinum Equity will announce 'optimization' initiatives and leadership changes at Owens & Minor's Products & Healthcare Services Business

6-12 monthsYOU ARE HERE

6 to 12 months months

Procurement and sourcing of medical supplies and equipment will shift to lower-cost, lower-quality alternatives to reduce costs

12-24 months

12 to 24 months months

Healthcare providers will experience longer lead times, more frequent product shortages, and inconsistent quality of Owens & Minor's medical supplies and equipment

24-36 months

24 to 36 months months

Widespread service disruptions, product recalls, and quality issues may emerge as Owens & Minor prioritizes cost-cutting over reliability and patient safety

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Healthcare providers should closely monitor the quality and reliability of Owens & Minor's medical supplies and equipment after the acquisition

  • Hospitals and clinics should consider diversifying their supply chains to reduce reliance on Owens & Minor and mitigate potential disruptions

  • Patients should be aware of potential changes in the quality and availability of medical products used in their care and advocate for their healthcare providers to maintain high standards

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

Share this company's PE status

"Owens & Minor, Inc.'s Products & Healthcare Services Business is now PE-owned. Here's what that means for you."