Cardinal Health formalises business consolidation

Cardinal Health formalises business consolidation

Cardinal Health has announced the formalisation of the consolidation of its businesses into two primary operating and reporting segments.

The firm said this strategic reorganisation would help better align resources with the distinct needs of each segment while reducing costs.

Its medical product and pharmaceutical distribution centres and nuclear pharmacies will combine to form its healthcare supply chain services segment.

This unit will have an annual revenue exceeding $80 billion (40.5 billion pounds) and be lead by vice-chairman George S Barrett.

Cardinal Health’s new clinical and medical products segment will be led by vice-chairman David L Schlotterbeck and will group products for infusion, respiratory care, medication dispensing and infection prevention.

This unit will have annual revenues in the region of $5 billion.

R Kerry Clark, chairman and chief executive officer of Cardinal Health, said: “Through this restructuring, we sharpen our focus on two distinct, large and growing segments of the health care industry by aligning our resources, reducing costs and helping to speed decision making for our customers.”

He added that these changes formalise plans that began 18 months ago and will strengthen the company by enhancing its focus on supplier-customers and provider-customers.

In May 2008, Cardinal Health completed the purchase of the assets of infection prevention products manufacturer Enturia.