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HIDA Supports the Medical Supplies for Pandemics Act
from REP JULY 21
The Health Industry Distributors Association (HIDA) supports the Medical Supplies for Pandemics Act,
a bipartisan and bicameral effort bringing the best of the public and private sectors together to establish long-term preparedness solutions.
The Medical Supplies for Pandemics Act strengthens the public-private partnership between the Strategic National Stockpile and the commercial medical supply chain. The bill would significantly enhance the nation’s ability to successfully manage future pandemics.
“Medical products distributors have the experience and expertise to help manage and distribute PPE and other essential products, and this bill ensures that critical knowhow can be put to even better use for the American people,” said HIDA President & CEO Matthew J. Rowan. “A well-managed and maintained strategic reserve of PPE and other medical supplies is a critical component of pandemic preparedness.”
The bill would make improvements to the Strategic National Stockpile (SNS) by: ʯ Diversifying Production by directing the SNS to incentivize suppliers to geographically diversify medical products manufacturing.
ʯ Investing in Capacity by directing the SNS to institute joint ventures with manufacturers. This ensures the ability to quickly ramp up to meet unanticipated increases in demand.
ʯ Encouraging Public-Private Collaboration
by directing the SNS to work with commercial distributors to manage a cushion of critical pandemic supplies to meet the immediate needs of healthcare providers when a large-scale public health emergency occurs. This cushion could include PPE and testing supplies, as well as ancillary and infection prevention products. Distributors would keep inventory current by monitoring expiration dates, rotating and replenishing these buffer reserves as necessary.
This bill builds on important bipartisan legislative initiatives, specifically the supply chain provisions in the Pandemic and All-Hazards Preparedness and Advancing Innovation Act of 2019 (PAHPAI). PAHPAI directs the public and private sectors to improve market capacity and identify key product substitutions.
Every day, distributors utilize their existing infrastructure and expertise. Throughout the COVID-19 pandemic, medical products distributors collaborated with the federal government as trusted partners. In 2020, they reliably delivered 51 billion units of PPE the last mile to providers. This included a 1,200% increase in N95 respirators, 150% increase in face masks, 36% more gowns and 11% more gloves.
HIDA resources on issues related to the pandemic, the healthcare supply chain, and the role of distributors can be found at HIDA.org.
Karl Scheetz is Loving it
His territory? ‘Everywhere on earth.’
Karl Scheetz doesn’t hold back when describing his professional role. He identifies himself as “national sales di-
rector” for Source Products Ltd. in Youngstown, Ohio. His territory? “Everywhere on earth.” And markets? “Before, it was any market. Now that has shifted to more strategic and focused opportunities.”
His father, Richard, was a civil engineer, and his mother, Rita, a registered nurse. Karl graduated from The Ohio State University with an interest in politics. “As time went on, I just enjoyed sales and the constant contact with people,” he says. “I love working with people!”
In 1990, he started working for Lyons Medical, a regional medical distributor in Youngstown, where his brother, Peter, worked as a sales representative. Karl focused on the physician and other non-acute markets in the Trumbull County area of Ohio. “It was an awesome place to work,” he says. “The owners were great gentlemen, and the sales and support staff were the best. I even met my wife there.”
His wife, Alba, was a receptionist at Lyons. Born in Pacentro, a mountain village in central Italy, she immigrated with her parents – Crescenzo and Emma Battaglini – to the United States in 1974. (“I asked her out on her third day at Lyons,” he says.)
Small-town local provider
In 1993, Lyons Medical was acquired by Owens & Minor, for whom Scheetz continued to work until 1995. Then he, his brother Chuck, and some investors formed Source Products. “Source was created so that end users could use a small-town local provider and not just be considered a ‘number’ when working with their distributor. We wanted people to be comfortable. We wanted them to be able to call us, place orders, get their questions answered and their hands held, if necessary. We wanted people to call us and not need a product code.”
In its earliest days, the company’s business centered on one residential nursing facility and one dialysis group. Looking to expand its offerings, Scheetz met with the late John Sasen, vice president of PSS (now McKesson Medical-Surgical), with whom his brother, Peter, had worked in the past. “I reached out to John with my vision of creating Source Products, where I wanted to take it, and what I needed to get there,” he recalls. The two worked out an arrangement whereby Scheetz became a 1099 representative and converted Source Products’ physician book of business to PSS, while PSS supported Source Products with access to its product lines. “It was a synergistic and profitable venture for all,” he says. And it allowed Source Products to focus on the long-term-care and dialysis-center markets.
In September 2018, Scheetz, his brother and general partners decided to sell the business to HemaSource, Inc. But he wasn’t ready to retire from sales. “I have three children to put through college,” he jokes. “Honestly, I love what I do. I can’t imagine doing anything else at this point in my life.”
New opportunities
The acquisition by HemaSource created new opportunities for Source Products, including access to multiple large warehouses, a true logistics platform to ship nationally, and the finances to ultimately give Source Products the ability to compete nationally while maintaining that “small-town distributor feel that we cherish so highly,” he says.
“There were many changes to deal with during the acquisition,” including changes in products and prices. “Things have really come together. We are maximizing our synergies to grow as one company.” On a personal note, the acquisition has allowed Scheetz to focus on what he truly loves about the industry – sales, new markets and new medical technologies. And family.
Karl and Alba Scheetz have three children – Luke, Marisa and Crescenzo. “All have been brought up with a great work ethic, as they watched their parents and grandparents work hard to achieve the American Dream,” he says. (Karl’s father, Crescenzo, worked in the steel mills, while Emma was a restaurant cook for 35 years.)
Luke is a junior at Youngstown State University and a former collegiate-level athlete specializing in long snapping. Marisa, who spent many years playing soccer, will attend Youngstown State University in the fall. And Crescenzo is an aspiring businessman. “He already has a war chest saved up, supports himself for his daily financial needs, and most likely will become a very successful entrepreneur someday.”
Karl was involved in Youth Sports as the children grew up, and has managed local flag football, soccer and lacrosse leagues. Today he is the president of the Canfield Lacrosse Club, Inc., a non-profit support arm for the sport.
Scheetz is optimistic about the future of independent distributors. “Together, Source Products and HemaSource will grow technologically and financially to compete against the larger medical and pharmaceutical distributors in our respective specialty markets,” he says. “We will do everything we can to set ourselves apart and make sure our customers never become just a number.”
