History
In 1910, A.L. Mills established the Northwestern Garment Factory making aprons for stock yards. In 1912, A.L. Mills established Mills Hospital Supplies Inc., making surgical gowns and nurses uniforms for hospitals. In the 1920s, A.L.’s son, Irving, took over the business and began distributing general medical supplies in addition to the garments. In 1961, Irving sold the company to Cenco. In 1966, A.L.’s grandsons Jim and Jon Mills left Cenco and founded Medline with approximately 12,000 square feet of warehouse space and one loading dock in Evanston, IL. In 1968, Medline opened its first textile manufacturing facility in Covington, Ind. In 1972, Medline opened its first non-textile manufacturing division (Dynacor) with the purchase of an injection molding company. In 1995, Medline opened its first facility for assembling Sterile Procedure Trays (SPT) in Waukegan, IL. In 1996, Medline entered the distribution business. In 2001, Medline started manufacturing private label wound care products for CVS, Walgreens, Target, Dollar General and Family Dollar. In April 2007, Medline acquired the Curad brand of first-aid products, fromFalse Claims Act Suit
In October 2007, former employee, Sean Mason, filed a ''qui tam'' suit on behalf of the United States against Medline alleging the company violated the False Claims Act and the Illinois Whistleblower Reward and Protection Act by: 1) providing bribes and kickbacks to healthcare providers; 2) fraudulently inducing the Federal government to agree to improper tracking customers in procurement contracts and then giving below-government pricing to those tracking customers; and 3) overbilling the Federal government's mail-order pharmacy program. The complaint remained under seal pending a determination by the U.S. Government and the State of Illinois to intervene and proceed with the case. Both declined to do so. After a court dismissed the first amended complaint, Mason filed a second amended complaint that focused on claims that Medline used a wide array of kickbacks and bribes to solicit business from healthcare providers. Mason claimed these kickbacks were falsely labeled as "rebates," and that Medline paid expensive gifts and made charitable donations to solicit business. In 2011, Medline settled the case for $85 million, with Mason receiving $23.4 million.Ethylene Oxide Litigation
Ethylene Oxide ("EtO"), is used to sterilize medical equipment but is also classified as a known carcinogen. According to the Environmental Protection Agency ("EPA"), in 2017 Medline released 2,863 pounds of EtO. Medline received a permit from the Illinois EPA to construct controls to reduce EtO emissions to below 150 pounds per year. In 2019, four Lake County individuals filed suit against Medline alleging that the company's release of EtO caused their respective cancers and accusing Medline of not taking sufficient steps to reduce its EtO emissions. Additional plaintiffs filed lawsuits alleging harm from Medline's EtO emissions, including birth defects and miscarriages in addition to cancer. It was discovered that Medline sought to settle the lawsuits in 2023 when it filed suit against insurance companies, National Union Fire and Marine Insurance Company and National Union Fire Insurance Company of Pittsburgh. In its suit, Medline asserted that it was seeking to settle the litigation but that the aforementioned insurance companies refused to honor their indemnity obligations. The 2023 suit was not the first issue Medline had with an insurance carrier concerning the EtO litigation. In 2022, an appeals court ruled that a Chicago insurer did not have to cover Medline against litigation alleging damages from the company's EtO emissions because the policy did not begin (in 2008) until after the alleged EtO emissions began (in 1994). As of early 2025 the litigation is still pending as no formal settlement or resolution has been announced by the parties.Labor relations
In over 50 years of doing business, Medline has had several charges filed against it with the National Labor Relations Board. In late September 2015, Medline terminated a warehouse operator at its Shepherdsville, Kentucky, distribution facility. The terminated employee alleged that Medline terminated him due to his alleged protected labor organizing activities. Medline settled with this employee for $15,000 on condition that the employee not return to work.References
External links
* {{official website Companies based in Cook County, Illinois Northfield, Illinois Health care companies based in Illinois Health care companies established in 1966 1966 establishments in Illinois