Adventist Health teams with Premier Inc., Prestige Ameritech for PPE

Adventist Health announced on Thursday that it had partnered with with Premier Inc, a leading health care 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 the hospital system uses each year from Prestige Ameritech for up to six years, inclusive of a three-year renewal option.

The move provides Adventist Health with an additional, U.S.based supplier of the personal protective equipment needed to protect health care workers caring for patients with COVID-19.

“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 of Adventist Health.

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, triggering widespread shortages of products needed to protect health care workers.

“With this long-term agreement, Adventist Health is breaking that cycle to fund domestic alternatives,” Beaman said. “Not only does this create more diversity in the supply chain, it also helps ensure that our work force has the supplies they need to stay safe, healthy and able to provide quality care for the patients that count on us.”

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.

“We are ready, willing and able to surge our U.S.-based production and help alleviate the national PPE shortage,” said Dan Reese, Prestige Ameritech co-founder and CEO. “With the long-term commitment from Adventist Health, we have certainty that allows us to invest in increased production.”

Premier Inc. President

Michael J. Alkire praised Adventist Health for its decision to step up and financially commit to domestic manufacturing of PPE, calling the health care system a “true innovator.”

“This agreement and the added domestic supply it enables would not be possible without Adventist Health’s commitment,” he said. “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 on Thursday.