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Front Page » Top Stories » Pharmed To Open Service Center For Hospitals

Pharmed To Open Service Center For Hospitals

Written by on July 22, 2004

By Tom Harlan
Pharmed Group plans to open a service center that could lower storage costs for South Florida hospitals.

The Doral company, which distributes 25,000 medical, surgical and rehabilitative-supply products, earlier this month bought a 67,000-square-foot building for $5.5 million on Northwest 107th Avenue near its corporate headquarters.

The company, with sales of $600 million a year, opened a "flexible service center" similar to a 60,000-square-foot service center it launched at University Hospitals Health System in Cleveland, company officials said.

The service-center model improves efficiency and lowers costs by using new technology and proven practices used in Cleveland, where Pharmed delivered specialized services to the hospital, said Frank Verona, Pharmed’s director of marketing.

"We’ve made this commitment to better serve our customers after experiencing great success in Cleveland," Mr. Verona said.

Pharmed decided the timing was right for the center when the company outgrew its 80,500-square-foot corporate headquarters, Mr. Verona said. The company, which has 225 employees in Miami-Dade County, last year added 43 employees to its national operations and expects to hire more, he said.

The company doesn’t have projections on how many jobs the new center will bring, Mr. Verona said, adding that the company’s expansion will create jobs.

"We haven’t bought other companies, and our head count has increased," he said.

By using the new center, hospitals can hire Pharmed to break down their bulk into smaller parcels and save money on warehouse workers and storage facilities, he said.

"Hospitals across the country have been challenged to manage costs," Mr. Verona said. "This is a win-win for both sides."

The company is focused on investing in technology to offer the best service to customers and growing organically, he said.

"Efficiency is Pharmed’s No. 1 concern," he said.

Company officials said the main reason Pharmed purchased the new building is to offer flexible services to the company’s clients, which include Miami Children’s Hospital, Mount Sinai and Baptist Health South Florida.

"At Pharmed, we have a total makeover story in the works as we transform what is essentially a traditional warehouse into a state-of-the-art showcase specifically designed to provide optimal service to our clients," said Jay Pierce, president of Pharmed Group’s domestic operations. "This location is a great fit with our existing operations in the area and Pharmed’s strategy to bring innovative solutions to the health-care industry."