HCA Strikes Deal to Invest in U.S.-Based Mask Production
January 21 2021 - 09:20AM
Dow Jones News
By Micah Maidenberg
HCA Healthcare Inc. said it would invest in a new venture to
manufacture personal-protective equipment after its spending on
such materials jumped last year.
The Nashville-based operator of hospitals, physician clinics and
other health-care providers said Thursday it would work with a
business called A Plus International Inc. to make surgical and
procedure masks from a factory in Asheville, N.C.
Some healthcare providers and other companies struggled at times
last year to ensure they had enough masks, gloves and other
protective equipment on hand for workers as the coronavirus spread.
Distributors like Fastenal Co. and W.W. Grainger Inc. saw jumps in
demand for such items.
"The recent surge in demand for PPE due to the pandemic has
underscored how dependent we have been on supplies from overseas
and the importance of working to diversify our supply chain," said
Dr. Jonathan Perlin, HCA's chief medical officer.
Last year, the company's spending on such equipment rose by more
than $196 million compared with 2019.
HCA didn't say in a statement how much it would invest in the
venture but said its funding comes through an entity designed to
support healthcare-related businesses in the western part of North
Carolina.
Production is expected to begin in the early part of this year.
HealthTrust, which works on purchasing for health companies, will
co-manage the new joint venture and serve as the distribution arm
for the business for organizations in the U.S.
A Plus International makes products like baby blankets, surgical
towels, masks, beard protector and gowns, according to its
website.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
January 21, 2021 09:05 ET (14:05 GMT)
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