Henry Schein's medical segment continues to grow as the company gains market share in large group practices, including those within health systems.
The Melville, N.Y.-based supply distributor reported global medical sales of $621.1 million, up 11% during the fourth quarter ended Dec. 31 as compared with the same period the year before. North American medical sales were $602 million, also up 11%. That includes influenza vaccine sales and a boost from an extra sales week.
Like other supply chain leaders, CEO Stanley Bergman expressed minimal concern with anticipated changes to the Affordable Care Act. Despite uncertainty about how the law might affect the healthcare industry, he said Henry Schein doesn't expect much decline in the number of covered lives in the U.S.
“We believe the medical markets we serve remain healthy, despite considerable industry speculation about potential changes to healthcare coverage under the new administration,” Bergman said, noting that the company believes that care will continue to shift toward outpatient care sites, which benefits Henry Schein since it specializes in serving physician offices.
The company reported $139.2 million in profits across its medical, dental and animal health segments, up 7% from the prior-year period. Henry Schein reported $506.8 million in profit for the full year, up 6% from 2015.
Fourth-quarter sales for the entire company were $3.1 billion, up 9% from the same time the year before. Full-year sales were $11.6 billion, also up 9%.
Earlier this month, Schein hired longtime Johnson & Johnson executive Bridget Ross to lead its growing medical segment. Ross started Feb. 14 after serving as vice president of commercial operations for J&J's medical devices group in North America.