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Suture Express Files Antitrust Lawsuit Against Cardinal Health and Owens & Minor
Date:12/6/2012

Suture Express, which stocks the vast majority of them.  The Suture Express model ensures doctors have what they need to treat patients, when they need it.

"We have an innovative business model that addresses the unique distribution challenges of specialty surgical products," Forsythe said.  "Suture Express aggregates national demand for these specialty products, carefully monitors the supply and demand characteristics for each unique product, and stocks virtually every product in the category at its secure Midwest distribution center.  By focusing specifically on suture and endomechanical product distribution, Suture Express can provide efficient, cost-effective, overnight delivery of the highly specialized products in these categories."

As a result, Suture Express helps reduce overall healthcare costs, according to Forsythe.  Hospitals supplied by Suture Express spend less on procurement and minimize the amount of staff time required to ensure doctors have the products they need.  In addition, the company can virtually eliminate the wait hospitals might face for products the broad-based distributors don't stock, according to Forsythe, making the entire supply chain more efficient.  "Our highly flexible and reliable service model provides certainty of supply for these specialty products.  This enhanced certainty permits hospitals to reduce inventory carrying costs and minimize waste generated by product obsolescence or expiration."

Many customers can't choose to work with Suture Express because of the financial penalties and other disincentives imposed by Cardinal Health and Owens & Minor, from whom those customers buy a wide range of other medical and surgical products, according to the lawsuit.  Suture and endomechanical products make up only about 10 percent of the medical products many customers buy from Cardinal Health and Owens & Minor. The two companies use their dominant shares in the rema
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