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Owens & Minor Products & Healthcare Services business

Healthcare services
PE-OWNED

PE-OWNED

Acquired by Platinum Equity

View PE Firm Profile

What PE Will Likely Do

Predictions

Reduction in quality of healthcare services provided by Owens & Minor, such as shorter appointment times, higher patient loads, and deferred equipment maintenance

MODERATEBased on: Platinum Equity's track record of cost-cutting and service quality reduction in other acquisitions

Decline in the quality of medical supplies and products distributed by Owens & Minor, including cheaper or substandard materials used in medical devices and equipment

MODERATEBased on: The industry playbook for private equity firms in the healthcare services sector, which often involves debt loading, dividend recapitalization, and deferred maintenance

Potential disruptions in the supply chain and delivery of critical healthcare products and services, leading to shortages or delays for healthcare providers and patients

MODERATEBased on: The lack of similar past failures recorded for Owens & Minor, which suggests the company may be vulnerable to the common private equity tactics

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements about 'cost optimization' and 'operational efficiency' initiatives

6-12 monthsYOU ARE HERE

“6 to 12 months months”

First round of staff reductions and changes to product sourcing and distribution processes

12-24 months

“12 to 24 months months”

Noticeable decline in the quality and reliability of Owens & Minor's healthcare products and services

24-48 months

“24 to 48 months months”

Potential disruptions in supply and service levels, leading to concerns from healthcare providers and patients

48-60 months

“48 to 60 months months”

Possible financial distress or restructuring for Owens & Minor, with further impact on the quality and availability of their healthcare offerings

What You Can Do

Take Action

Actions

  • Healthcare providers should closely monitor the quality and reliability of Owens & Minor's products and services, and be prepared to seek alternative suppliers if necessary

  • Patients should be aware of potential changes in the quality of care and medical equipment, and advocate for their healthcare needs with their providers

  • Regulators and industry watchdogs should closely monitor the Owens & Minor acquisition for any signs of declining quality or service disruptions that could impact patient care

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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