Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of health care solutions to office-based dental and medical practitioners, today announced the acquisition of a majority ownership position in Prism Medical Products, LLC (PRISM), a nationwide provider of specialty home medical supplies with a core competency in advanced wound care products. With this transaction, Henry Schein Medical, the U.S. medical division of Henry Schein, Inc., enters an established and growing multibillion-dollar market for home medical equipment and supplies.
PRISM is a privately held company founded in 2006 with headquarters in Elkin, North Carolina, as well as an operations office in Las Vegas, Nevada, and 10 fulfillment centers located across the U.S. The company has more than 200 team members and had net revenue for the 12 months ended September 30, 2020, of approximately $52 million. PRISM is expected to be neutral to Henry Schein's 2021 earnings per diluted share and accretive thereafter. Financial terms were not disclosed.
PRISM will operate as a subsidiary of Henry Schein Medical and will be managed separately as an individual division by Chris Cartwright, Founder and President of Prism Medical Products.
“Expanding beyond our core base of office-based physicians and entering the home health market has been a long-standing strategic goal of Henry Schein’s medical business, and with PRISM we have the ideal partner with a strong brand and a complementary business model,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. “This partnership expands Henry Schein Medical’s continuum-of-care delivery model and allows us to move closer and to interact directly with patients. It also strengthens our relationships with the physicians who prescribe home medical supplies.
“Importantly, PRISM and its management team is tightly aligned with Henry Schein’s strategy and culture, and we look forward to a smooth integration of this business,” Mr. Bergman said. “We welcome our new colleagues to Team Schein and look forward to continued success together.”
PRISM serves a broad and loyal referral network of nationally affiliated and independently operated wound care clinics, as well as specialist practices and clinics in primary care, ostomy, podiatry, rehabilitation and physical therapy, general and plastic surgery, dermatology, and vascular medicine. PRISM enjoys strong referral retention rates as well as high marks for customer satisfaction.
“The wound care management and home health care markets are growing at an accelerated pace,” said Brad Connett, President, U.S. Medical Group of Henry Schein. “The increasing prevalence of chronic diseases, such as diabetes, is creating high demand for wound care products, and a rising senior population is driving greater demand for home-based care, especially for those unable to travel to a care facility.
“We want to help our customers – physicians and home health providers – by offering this important service to homebound patients. We see near-term opportunity to expand PRISM’s market presence by offering diabetic supplies, catheters, oxygen supplies, ostomy pouches, incontinence supplies, and therapeutic shoes, among other categories. It’s gratifying to join with PRISM to ensure that homebound patients or those choosing to recover at home following a hospitalization receive the high-quality and convenient health care they require,” added Connett.
PRISM offers approximately 4,000 unique items from more than 30 manufacturers; 90% of shipments are wound-care products, with the balance being ostomy and urological supplies. Committed to industry leading delivery time, PRISM ships directly to a patient’s home and has a dedicated insurance, billing, client care, and account management team of professionals, which allows next-day delivery on most orders received by 4 p.m. across each time zone in the continental United States.
“I am very proud of all that the team at PRISM has accomplished, including our track record of organic revenue growth along with consistent increases in unique referral sources and new patients. We look to the future with excitement and optimism as part of Henry Schein Medical,” said Mr. Cartwright.
“We have established a valuable reputation within the home medical supply community by showing that putting the patient first demonstrates our commitment to understand and follow through on the needs of the clinicians who are responsible for their care. We are specialists,” said Mr. Cartwright. “Our ability to consistently interpret clinical home care directives and assist patients in navigating their insurance coverage to select from a wide range of available products is unique. This high-touch approach to building partnerships with clinicians – coupled with a broad base of payor contracts and a commitment to develop processes and personnel – has helped medical practices to optimize workflows and resulted in exemplary service to patients.”
About Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for health care professionals powered by a network of people and technology. With more than 19,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our Business, Clinical, Technology, and Supply Chain solutions help office-based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government and institutional health care clinics, as well as other alternate care sites.
Henry Schein operates through a centralized and automated distribution network, with a selection of more than 120,000 branded products and Henry Schein private-brand products in stock, as well as more than 180,000 additional products available as special-order items.
A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 31 countries. The Company's sales from continuing operations reached $10.0 billion in 2019, and have grown at a compound annual rate of approximately 13 percent since Henry Schein became a public company in 1995.
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Executive Vice President and Chief Financial Officer