Mohawk Medbuy and Plexxus Announce Amalgamation Discussions
Plexxus and Mohawk Medbuy Corporation
Announce Amalgamation Discussions
Bringing the two organizations together will drive savings and supply chain efficiencies for the health care system and support better patient outcomes
TORONTO – June 5, 2019 - Mohawk Medbuy Corporation (MMC) and Plexxus, Ontario’s two largest public health care supply chain shared services organizations (SSOs), have announced the first step of a proposed amalgamation with the execution of a Letter of Intent. Bringing the two not-for-profit SSOs together is a natural step in their ongoing collaboration over the past several years. It builds on the large-scale integration of their respective warehouse operations into a single, combined distribution centre in 2018. More recently, Mohawk Medbuy and Plexxus established MMC Plexxus Sourcing Collaborative (MPSC) to take high value, clinical categories to market together on behalf of the hundreds of hospitals and health care providers they support.
This voluntary move to amalgamate is in alignment with the Ontario Government’s objective to have a centralized supply chain system across the Broader Public Sector. Collectively, Plexxus and Mohawk Medbuy oversee approximately 60% of the health care spend in Ontario hospitals for a broad range of medical/surgical product categories (MMC also covers New Brunswick and Prince Edward Island). Combining their respective volumes, consolidating contracts and streamlining purchasing processes across vendors will yield additional value and savings that hospitals can reinvest in front line care. Amalgamation opens the door for increased efficiencies and innovation of integrated supply chain services by leveraging the combined procurement and clinical expertise of the two organizations.
Plexxus and Mohawk Medbuy have long track records of bringing vital services and support to the benefit of their respective hospitals. The fruition of this next step will open the door to a stronger, more capable health care supply chain organization for Ontario, New Brunswick and PEI.