Watch the video above to learn more about DeRoyal’s domestic manufacturing facility – and how it’s supporting sustainable, cost-effective access to a vital product providers need to care for patients.
Premier and our members have been long-time leaders in re-shoring and near shoring the production of vital pharmaceuticals and medical products to better manage risk, prevent shortages and ensure supply chain resiliency.
And recently, Premier was delighted to host member health systems and government and community leaders at two of our state-of-the-art domestic manufacturing facilities.
Premier’s Chief Commerical Officer Andy Brailo greets DeRoyal production facility employees.
Historically, medical products critical to the daily operations of healthcare providers have been overwhelmingly sourced overseas, with approximately 80 percent of personal protective equipment (PPE) coming from Southeast Asia.
This overreliance led to widespread shortages for critical medical products and drugs during the pandemic. And it continues to put us at the mercy of future events – including natural disasters, disease outbreaks or geopolitical events.
This is why it’s so important to invest in domestic and diverse sources.
When nearly 74 percent of U.S. hospitals reported that they were unable to source adequate quantities of isolation gowns in April 2020 – Premier, S2S Global and 34 of our members, took action.
We partnered with DeRoyal Industries Inc.
to create a new joint venture to expand the domestic production of isolation gowns – a vital product for healthcare providers. Through this investment:
Gowns are designed to Premier member hospital specifications and considering care delivery requirements.
Raw materials are primarily sourced from U.S.-based manufacturers, with backup capacity from Mexico and South America.
We're transforming a traditionally man-made process to advanced automated production, with the capability to produce two gowns every second – increasing availability, speed to market and helping to drive savings.
And we’re supporting the creation of 30 new jobs in Powell, TN.
Through this initiative, Premier members can diversify their supply sources at a price point that is competitive with overseas manufacturing – and we expect this partnership to produce 25 million domestically manufactured gowns annually.
Over the years, Premier and our members have pooled funds, aggregated demand forecasts and provided buying commitments to give manufacturers the surety needed to expand domestic production, modernize facilities and drive innovations. Together, we’re proud to be bolstering made-in-the-USA medical supplies and pharmaceuticals for providers and patients – while supporting U.S. job creation and stronger local economies.
We believe these initiatives further our mission to transform the healthcare industry, strengthen the supply chain, and build healthier communities for the future.
The partnerships with DeRoyal and Exela provide unique value unlocked by Premier and the GPO, enabling differentiated access to high-quality isolation gowns and a host of pharmaceuticals.