Bergen Brunswig Corporation Forms Alliance with Baxter Healthcare Corporation for Baylor Health Care System Distribution

Bergen Brunswig Corporation, in collaboration with Baxter Healthcare Corporation, has formed an alliance to provide the distribution channel for products to the Baylor Health Care System (BHCS) and its affiliates. This strategic partnership aims to revolutionize the continuum of care by making the distribution process more efficient through materials management. BHCS, the largest network of hospitals in the Southwest, has seven hospitals and three affiliate hospitals with over 2,300 licensed beds, and this alliance is set to significantly impact the healthcare delivery system.

Key Takeaways:

• Bergen Brunswig Corporation and Baxter Healthcare Corporation have formed an alliance to provide the distribution channel for products to the Baylor Health Care System (BHCS) and its affiliates.
• BHCS, the largest network of hospitals in the Southwest, has seven hospitals and three affiliate hospitals with over 2,300 licensed beds.
• The alliance involves Bergen Brunswig serving as the logistics coordinator, managing the electronic catalog for all suppliers and processing all orders.
• BHCS will determine if the appropriate facilitator to complete the delivery process is Baxter or one of Bergen Brunswig's companies.
• The integration concept originated in 1992 when BHCS and Bergen Brunswig redesigned the traditional hospital/manufacturer/wholesaler relationship.
• The alliance is a "one-stop-shop" that will facilitate the distribution of products throughout the BHCS continuum of care.
• "This Alliance is very unique because of the level at which each distributor will become involved with the materials management process," said Robert E. Martini, Chairman and CEO of Bergen Brunswig Corporation.
• The partners will participate at the master scheduling level, creating forecasts, handling billing of materials, and managing the flow of goods through point of use.
• Baylor's goal is to operate in a paperless environment within 18 months, thereby reducing costs.
• Darnell Martin, Group Vice President of Business Process Innovation, Baxter Healthcare Corporation, stated, "In this changing environment, we need to draw on the strengths that distributor/manufacturer alliances can bring to taking costs out of the system."

Statistics:

• Over 2,300 licensed beds across seven hospitals and three affiliate hospitals in the Baylor Health Care System.
• $8.0 billion in annualized revenues for Bergen Brunswig Corporation.
• $9.3 billion in sales for Baxter International in 1994.
• The alliance will impact the traditional hospital/manufacturer/wholesaler relationship, which was redesigned by BHCS and Bergen Brunswig in 1992.

Sources:

• Bergen Brunswig Corporation press release, dated May 18, 1995.
• Baxter Healthcare Corporation information.
• Baylor Health Care System information.