Mohawk Medbuy and Plexxus to Explore Amalgamation
Bringing the two organizations together will drive savings and supply chain efficiencies for the health care system and support better patient outcomes
Mohawk Medbuy Corporation (MMC) and Plexxus, Ontario’s two largest public health care supply chain shared services organizations (SSOs), recently signed an exclusive, non-binding Memorandum of Understanding (MOU) to explore amalgamation. The two not-for-profit organizations have a strong track record of collaboration, including jointly supporting the Province of Ontario during the COVID-19 pandemic to address PPE procurement and other supply chain challenges.
MMC and Plexxus have enjoyed significant success working together. They invested in the creation of Hospital Logistics Inc. (HLI), a joint warehouse and logistics solution to support their respective Member hospitals. In 2019, they established the MMC Plexxus Sourcing Collaborative (MPSC) to undertake large-scale, joint sourcing initiatives of high-value clinical items. Through MPSC, they’re bringing the vast majority of hospital spend in Ontario, New Brunswick and PEI to market with some of the largest health care procurements in Canada. Drawing on the scope and scale of MPSC activities and lessons learned throughout the pandemic, MMC has significantly expanded its master repository of data to provide visibility on hospital usage by item.
Beyond their collaborative ventures, both organizations have continued to evolve. Mohawk Medbuy has added new services, acquired two organizations and many new Members – diversifying to include supporting municipalities, education, and child welfare agencies. “We’re committed to simplifying and streamlining the supply chain process to make it more effective for all stakeholders with fewer entities and centralized, data-driven solutions,” said Tony DiEmanuele, President and CEO of MMC. “The opportunity to add further services through this process is very timely and further aligns with where we believe the sector is going.”
“We have a strong track record of success working with Mohawk Medbuy,” said Lynne Hudson, Interim President and CEO of Plexxus. “We have best-in-practice service lines that we feel can only make the potential outcome of this venture more robust. Incorporating our skill sets with MMC’s will create tremendous value for Members and support the health care sector overall.”
If successful, the intent is to commence combined operations as of April 1, 2023.
For more information, please contact:
Grant Beamish
Director, Business Development & Communications, Mohawk Medbuy
gbeamish@mohawkmedbuy.ca
OR
Chantelle Bani
Manager, Marketing & Communications, Plexxus
chantelle.bani@plexxus.ca
About Mohawk Medbuy Corporation
Mohawk Medbuy is a national, not-for-profit, shared services organization that supports hundreds of hospitals, non-acute care providers and other public sector organizations in ON, NB, NS, NL, PEI, MB and YT. MMC provides efficient, cost-effective procurement of medical/surgical supplies, pharmaceutical products, capital equipment and food/nutrition solutions, as well as warehousing and logistics, accounts payable and linen services. The Burlington, Ontario-based organization also has offices in Thunder Bay, London and Brantford and a linens facility in Hamilton. For more information, visit mohawkmedbuy.ca.
About Plexxus
Plexxus is a leading health care supply chain organization in Ontario, delivering value to its hospitals since 2006. Plexxus helps hospitals focus on caring for their patients by managing their supply chain and back-office services. Our team of experts provide a wide variety of essential services to our 64 hospital sites so that they can concentrate on what they do best – providing excellent clinical care. Our diverse customer base includes specialty, community, academic and research hospitals. For more information, please visit www.plexxus.ca.