RF Surgical and Medline Announce a New Expanded Non-Exclusive Distribution Agreement for the RF Surgical Detection System™

BELLEVUE, Wash. & MUNDELEIN, Ill.--(BUSINESS WIRE)--RF Surgical Systems and Medline Industries today announced that the two companies have entered into a new non-exclusive distribution agreement by which Medline will continue to distribute the RF Surgical Detection System and have amicably resolved their legal dispute.

“We are pleased to announce that our dispute with Medline has been amicably concluded and that Medline will continue to distribute the RF Surgical Detection System”

Under the terms of the new distribution agreement, Medline will continue to distribute the RF Surgical Detection System to hospitals, surgery centers and other health care providers in the United States and Canada. Additionally, Medline and RF Surgical will expand their relationship to include Australia and New Zealand.

“We are pleased to announce that our dispute with Medline has been amicably concluded and that Medline will continue to distribute the RF Surgical Detection System,” said Kevin Cosens, Chief Executive Officer of RF Surgical Systems, Inc. “Medline has contributed to the success of the RF Surgical Detection System, and we are fortunate to be able to continue to work with our Medline colleagues,” he added.

Medline, the nation's largest privately held manufacturer and distributor of healthcare products, manufactures and distributes more than 100,000 products to hospitals, extended care facilities, surgery centers, home care dealers and agencies and other markets. “We are pleased to continue to offer the RF Surgical Detection System to our customers,” said David Greenberg, Medline Executive Vice President, Strategy.

The patented and FDA-approved RF Surgical Detection System scans for and signals an alert if any radio frequency-tagged sponges, gauze or towels remain in a patient prior to surgical closing procedures. Since the system was FDA approved over two years ago, all hospitals currently utilizing this technology have eliminated the problem of retained surgical sponges/gauze in patients.

The Centers for Medicare and Medicaid Services (CMS) and an increasing number of private insurers have indicated that they will no longer provide reimbursement for procedures associated with “never” events such as left-behind surgical sponges. Published studies today indicate that one in every 1,000 to 1,500 intra-abdominal surgeries results in a sponge left behind in a patient. A retained sponge incident can lead to serious complications, including sepsis, unnecessary x-rays, need for repeat surgeries and even death.

About RF Surgical Systems, Inc.

RF Surgical Systems is a privately held medical device company headquartered in Bellevue, Washington and maintains engineering R & D facilities in San Diego, California. The concept for the RF Surgical Detection System was developed by Dr. Jeffrey Port, a thoracic surgeon, and Mr. William Blair, an electrical engineer. The system was the first FDA-approved surgical sponge detection system on the market. For more information, please visit www.rfsurg.com.

About Medline

Medline, the nation’s largest privately held manufacturer and distributor of healthcare products, manufactures and distributes more than 100,000 products to hospitals, extended care facilities, surgery centers, home care dealers and agencies and other markets. Headquartered in Mundelein, IL, Medline has more than 800 dedicated sales representatives nationwide to support its broad product line and cost management services.

Over the past five years, Medline has been the fastest growing distributor of medical and surgical supplies in the U.S., serving as the primary distributor to over 250 major hospitals and health care systems. As a leading distributor, Medline offers a comprehensive array of consulting and management services encompassing the supply chain and logistics, utilization and standardization, business tools and enhanced reporting capabilities, and on-staff clinicians.

Medline has a growing network of 34 distribution centers around the country, as well as an expanding, dedicated transportation fleet with over 160 vehicles in a variety of sizes to fit customers’ specific delivery needs. The fleet is equipped with the latest navigation devices for enhanced order tracking and communication. For more information please visit medline.com.