Healthcare Technology Featured Article

June 13, 2013

Medical Specialties Distributors Acquisition Capitalizes on Growing Infusion Market

By 2019, RnR Market Research predicts that the infusion market in the U.S. will grow by 50 percent. The industry generated $1.5 billion in 2012 and grew 3.2 percent over 2011 levels.

Medical Specialties Distributors (MSD), to take advantage of this growth potential, has acquired Medical Technology Resources (MTR) for an unknown sum. MSD is a supplier of infusion products and supplies, technology solutions, and biomedical and distribution services for oncology and home care.

Demand for intravenous (IV) therapy within alternate site settings has increased demand for infusion supplies. "Alternate sites" are simply alternatives to checking a patient into a hospital for IV drug and fluid administration.

For example, patients can have infusions in their homes or at an ambulatory infusion center. They can also receive treatment at their primary care doctor's office, a physician-run infusion center or a specialty pharmacy infusion center.

A study completed by Walgreens Specialty Pharmacy found that site-of-care optimization could cut infusion treatment costs by 50 to 60 percent. The average costs at outpatient hospitals are 86 percent higher than costs for care at a specialty pharmacy or other alternate site.

Two of the infusion treatments studied by Walgreens were non-chemotherapy drugs. By implementing alternate site infusion for these drugs, the U.S. healthcare system could save $6.30 per health plan beneficiary, or $6.3 million per 1 million insured beneficiaries.

"We are very excited about MTR becoming a part of MSD because it creates a stronger partner for our customers," said Andy Amicon, CEO of MTR. "Our customers in long-term care and home infusion pharmacies will have access to more products and services, a larger distribution network, and increased biomedical service centers to more efficiently meet their needs."

MSD started partnering with Water Street Healthcare Partners in 2010. Water Street is a private equity firm that focuses exclusively on the healthcare market.

"MTR builds on MSD’s core capabilities in product distribution and biomedical services, and increases its presence in the Midwest geography," said Rob Womsley, partner with Water Street and chairman of MSD. "Longer-term, it expands MSD’s unique position as the leading national distributor dedicated to serving the growing numbers of home infusion providers."

Edited by Alisen Downey
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