Avera Health, Owens & Minor to Open New Integrated Service Center at Foundation Park in 2025

Avera Health, an integrated health system based in Sioux Falls, SD, and Owens & Minor, Inc., a Fortune 500 global health care solutions company, today announced plans for a 330,000 square foot commercial building for supply distribution and other integrated services. The building will be constructed at Foundation Park in north Sioux Falls.

“Serving over 72,000 square miles for our health system comes with logistical complexities, redundancies and challenges. The Integrated Service Center will house our key central services, products and equipment to become the logistical hub of our organization. These services are currently housed separately at eight different locations. Moving them to one center at Foundation Park will help us gain many efficiencies, reduce our cost to serve and leverage each of our departments’ strengths to serve our patients effectively across the entire footprint,” said Sara Henderson, Vice President for Supply Chain at Avera Health.

Owens & Minor is expanding its presence in the region and will remain Avera’s primary distributor of essential medical/surgical supplies. Owens & Minor will use the new Integrated Service Center as a hub to service Avera and leading health care organizations in the region.

Once complete, the Avera Integrated Service Center will house numerous Avera services, including:

• Centralized pharmacy services
• Supply chain, serving as central distribution for medical supplies for Avera hospitals, clinics and long-term care centers
• Print shop
• Biomedical Engineering, the department that maintains medical capital equipment, including patient monitors, beds and diagnostic technology
• Home medical equipment distribution center
• Courier operations

“Avera’s pharmacy operations have experienced double-digit growth, year by year, for the past several years. The Integrated Service Center will allow our pharmacies to incorporate more automation and technology into the operations to support the increasing prescription volumes in an efficient manner. The center will also house a pharmacy warehouse for central distribution of hospital medications. This will allow for more effective management of drug shortages,” said Melissa Goff, Vice President for Pharmacy, Avera Health.

“As longtime partners of Avera Health, we’re proud to collaborate and support this exciting new phase of Avera Health’s supply chain growth, while also strengthening our ability to support health care throughout the region,” commented Peter McCullough, Senior Vice President of Global Operations, Owens & Minor.

“Having this key supplier in Sioux Falls will prove to be advantageous for both Avera Health and Owens & Minor. This project will result in a lot of shared efficiency and reduced carbon footprint as we distribute supplies to our numerous health care locations,” Henderson said.

Site work will begin this fall with opening of the center planned for spring 2025.