Owens & Minor struggled in 2016 and may have made missteps in its own consolidation practices while responding to changes in the healthcare field.
The firm is in transition to respond to the shifts in the healthcare ecosystem. During its second-quarter earnings call, CEO Cody Phipps noted that the company is still feeling the April 2016 loss of a $525 million contract with Kaiser Permanente. That loss was two-fold, as Kaiser then signed with competitor Cardinal Health.
Phipps noted that Owens & Minor is evaluating every aspect of its business to identify improvements in operating efficiency and revenue growth, introducing a four-part strategy for sustained, profitable growth. For example, Owens & Minor recently closed the acquisition of Byram Healthcare, a disposable medical supplies firm that delivers directly to patients. Phipps noted that the $380 million acquisition provides access to the healthcare consumer and furthers the goal of “clinical relevancy along the continuum of care,” with its unique patient access.