Henry Schein, Inc. (‘Henry Schein’) operates as a solutions company for health care professionals powered by a network of people and technology.
The company provides health care products and services primarily to office-based dental and medical practitioners, as well as alternate sites of care.
With experience distributing health care products, the company has built a vast base of small, mid-sized, and large customers in the dental and medical markets, serving more than one million customers w...
Henry Schein, Inc. (‘Henry Schein’) operates as a solutions company for health care professionals powered by a network of people and technology.
The company provides health care products and services primarily to office-based dental and medical practitioners, as well as alternate sites of care.
With experience distributing health care products, the company has built a vast base of small, mid-sized, and large customers in the dental and medical markets, serving more than one million customers worldwide across dental practices, laboratories, physician practices, and ambulatory surgery centers, as well as government, institutional health care clinics, and other alternate care clinics.
The company’s operations or affiliates are located in various countries and territories. The company’s broad global footprint has evolved over time through organic growth, as well as through the contribution from its strategic acquisitions.
The company stocks a comprehensive selection of more than 300,000 branded products and Henry Schein corporate brand products through its main distribution centers. The company’s infrastructure, including over 5.4 million square feet of space in various strategically located distribution centers and 0.5 million square feet of space in multiple manufacturing facilities around the world, enables it to historically provide rapid and accurate order fulfillment, better serve its customers, and increase its operating efficiency.
Segments
The company’s revised reportable segments consist of: Global Distribution and Value-Added Services; Global Specialty Products; and Global Technology.
Global Distribution and Value-Added Services includes distribution to the global dental and medical markets of national brand and corporate brand merchandise, as well as equipment and related technical services. This segment also includes value-added services, such as financial services, continuing education services, consulting, and other services. This segment also markets and sells under the company’s own corporate brand, a portfolio of cost-effective, high-quality consumable merchandise.
Global Specialty Products includes manufacturing, marketing, and sales of dental implant and biomaterial products, as well as endodontic, orthodontic, and orthopedic products, and other health care-related products and services.
Global Technology includes development and distribution of practice management software, e-services, and other products, which are distributed to health care providers.
Global Distribution and Value-Added Services
Consumable merchandise and equipment: The company distributes consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, dental specialty products, diagnostic tests, infection-control products, and vitamins. The company stocks a comprehensive selection of more than 300,000 branded products and Henry Schein corporate brand products through its main distribution centers. The company also markets and sells its own corporate brand portfolio of cost-effective, high-quality consumable merchandise products.
Home health business: The company distributes homecare medical products, including incontinence, urology, ostomy, enteral nutrition, advanced wound, and diabetes supplies, as well as continuous glucose monitoring devices. These products are delivered directly to patients in their homes, providing convenience and accessibility while supporting patient care and adherence to treatment plans.
Value-added products and services: The company offers a broad range of value-added solutions, including continuing education programs for practitioners, and consulting services. The company’s suite of technology-driven tools and expert advisory services helps health care professionals enhance practice efficiency and improve patient outcomes.
Repair services: The company has multiple equipment sales and service centers worldwide that provide a variety of repair, installation, and technical services for its health care customers. The company’s technicians provide installation and repair services for dental handpieces, dental and medical small equipment, table-top sterilizers, and large dental equipment.
Financial services: The company offers its customers solutions in operating their practices more efficiently by providing access to a number of financial services and products provided by third-party suppliers (including non-recourse financing for equipment, technology, and software products, non-recourse practice financing for leasehold improvements, business debt consolidation, and commercial real estate, non-recourse patient financing, and credit card processing) at rates that are generally lower than what its customers would be able to secure independently. The company also provides staffing services, dental practice valuation, and brokerage services.
Global Specialty Products
Dental implants and digital solutions: The company develops, manufactures, markets, and distributes a broad portfolio of dental implants, prosthetic components, instruments, and digital workflow solutions for implant-based tooth restorations. With research and development and manufacturing facilities in the United States, Switzerland, Germany, Brazil, and France, the company serves customers with various global and regional implant brands across a wide range of price segments. Supported by the company’s specialized sales force, it markets its products and solutions in approximately 90 countries, directly to dental practices and surgical specialists via its sales subsidiaries and its network of international third-party and Henry Schein distribution partners.
Biomaterials: The company markets and distributes a broad portfolio of biomaterials for dental tissue regeneration. The product portfolio primarily consists of a broad range of privately branded allograft, xenograft, and synthetic biomaterials. The company’s dedicated biomaterial specialists support its direct implant sales force and Henry Schein oral surgery-focused distribution channels.
Orthodontics: The company develops, manufactures, and distributes a comprehensive range of orthodontic products, including brackets, braces, aligners, and accessories. In collaboration with clinicians, the company’s research and development teams drive innovation to enhance patient care. With manufacturing facilities in the United States, Mexico, and France, the company serves dental practices in over 70 countries through its specialized sales force, international partners, and the Henry Schein distribution network.
Endodontics: The company develops, manufactures, markets, and distributes a complete portfolio of endodontic products across multiple brands catering to both endodontic specialists and general practitioners. This includes stainless steel and NiTi shaping files, irrigation solutions, endodontic power equipment, sealers, and root repair materials. Leveraging the company’s research and development and manufacturing facilities in the United States, Switzerland, and Brazil, it focuses on delivering meaningful innovation to help advance endodontic care, provide advanced training and education through a network of training centers and digital services, and serve its customers through multiple brands and multiple channels addressing all segments of the market. By investing in dedicated endo-specific competencies and resources to support the company’s different sales channels, it is successfully marketing its products and brands in over 90 countries.
Orthopedics: The company develops, manufactures, and distributes innovative implants and instruments that are designed to treat injuries, diseases, and disorders of the limbs, joints, and related tissues in the upper and lower extremities. The company also provides surgical accessories, including blades, burs, drills, a variety of pins and wires to support orthopedic surgical procedures, and a portfolio of specialized instruments designed to simplify implant removal and preserve patient bone-stock during revision arthroplasty procedures. The company employs an extensive global network of independent sales agencies and direct sales specialists, and partners closely with IDNs and GPOs. The majority of the company’s revenue is generated in the United States market, with the remaining revenue coming from Canada and countries in Latin America, Europe, and the Asia Pacific region.
Other: The company also sources or manufactures other medical and dental health care products and services that are sold to customers, including handpieces and small equipment, rotary, hand instruments, and repair services, restoratives, and preventives, as well as certain other health care-related consumable merchandise products and services.
Global Technology
The company sells practice management, business analytics, patient engagement, and patient demand creation software solutions to its dental customers. The company’s practice management solutions provide practitioners with electronic medical records, patient treatment history, analytics, billing, accounts receivable analyses and management, appointment calendars, electronic claims processing, and word processing programs, network and hardware services, e-commerce and electronic marketing services, e-Prescribe medications and prescription solutions, sourcing third-party patient payment plans, and transition services and training and education programs for practitioners. The company has technical representatives supporting customers using its practice management solutions and services.
As of December 28, 2024, the company had an active user base of approximately 100,000 practices and 321,000 consumers, including users of AxiUm, Dentally, Dentrix Ascend, DentalVision, Dentrix Dental Systems, EXACT, Gesden, Jarvis Analytics, Julie Software, Oasis, Officite, OrisLine, PBS Endo, Power Practice Px, and subscriptions for Demandforce, Sesame, and Lighthouse 360 for dental practices and DentalPlans.com for dental patients.
Commitment to superior customer service: The company maintains a strong commitment to providing superior customer service. It frequently monitors its customer service through customer surveys, focus groups, and statistical reports. The company’s customer service policy primarily focuses on:
Exceptional order fulfillment: The company ships an average of approximately 142,000 cartons daily.
Comprehensive ordering process: Customers may place orders 24 hours a day, 7 days a week via e-commerce solutions, telephone, fax, e-mail, and mail.
Integrated management information systems: Certain of the company’s information systems generally allow for centralized management of key functions, including accounts receivable, inventory, accounts payable, payroll, purchasing, sales, order fulfillment, and financial and operational reporting. These systems allow the company to manage its growth, deliver superior customer service, properly target customers, manage financial performance, and monitor daily operational statistics.
Competition
In North America, in the dental distribution market, the company’s primary competitors in the U.S. are the Patterson Dental division of Patterson Companies, Inc. and Benco Dental Supply Company. The company’s primary competitors in the U.S. medical distribution market, which accounts for the large majority of its global medical sales, are McKesson Corporation and Medline Industries, Inc., which are national distributors.
Outside of the U.S., the company also faces significant competition internationally, where it competes on the basis of price and customer service against several large competitors, including the GACD Group, Proclinic SA, Lifco AB, Nuent Group AB, Planmeca Oy, and Billericay Dental Supply Co. Ltd., as well as a large number of other dental and medical product distributors and manufacturers in the international countries and territories it serves.
Within Global Specialty Products, the company’s primary competitors include Straumann, Envista, Zimvie, and Dentsply Sirona.
With regard to the company’s dental software, it competes against numerous companies, including the Eaglesoft division of Patterson Companies, Inc., Carestream Dental LLC, Centaur Software Development Co Pty Ltd. (d.b.a. dental4windows, dental4web), Open Dental Software, Inc., PlanetDDS LLC, Good Methods Global Inc. (d.b.a. CareStack), Curve Dental, LLC., the NextGen division of Quality Systems, Inc., eClinicalWorks, and Epic Systems Corporation. In other software end markets, including revenue cycle management, patient relationship management, and patient demand generation, the company competes with companies, such as Vyne Medical, Weave Communications, Inc., and Solutionreach, Inc.
Business Strategy
The company’s BOLD+1 Strategic Plan consists of the following:
Build (‘B’) Complementary software, specialty, and services businesses for high growth.
Operationalize (‘O’) One Distribution to deliver exceptional customer experience, increased efficiency, and growth.
Leverage (‘L’) One Schein to broaden and deepen relationships with the company’s customers.
Drive (‘D’) Digital transformation for the company’s customers and for Henry Schein.
+1 Create Value for the company’s stakeholders.
The company's strategies are to increase penetration of its existing customer base; increase the number of customers it serves; leverage its value-added products and services; and pursue strategic acquisitions and joint ventures.
Markets Served
The company supports its dental and medical professionals through the many SKUs that it offers, as well as through important value-added services, including practice management software, electronic claims processing, financial services, and continuing education, all designed to help maximize a practitioner’s efficiency.
Additionally, the company seeks to expand its dental full-service model and medical offerings in countries where opportunities exist. It does this through both direct sales and by partnering with local distribution and manufacturing companies.
Governmental Regulations
The Centers for Medicare & Medicaid Services’ (‘CMS’) 2024 durable medical equipment, prosthetics, orthotics, and supplies (‘DMEPOS’) reimbursement schedule, which was effective January 1, 2024, reduced the DMEPOS reimbursement rates for non-rural suppliers, such as the company, by removing the Coronavirus Aid, Relief, and Economic Security (‘CARES’) Act relief rates in effect during the COVID-19 pandemic.
Certain of the company’s businesses are subject to local, state, and federal governmental laws and regulations relating to the manufacturing and/or distribution of pharmaceuticals and medical devices and supplies. Among the United States federal laws applicable to the company is the Controlled Substances Act, the Federal Food, Drug, and Cosmetic Act, as amended (‘FDC Act’), Section 361 of the Public Health Service Act, and Section 401 of the Consolidated Appropriations Act of the Social Security Act, as well as laws regulating the billing of and reimbursement from government programs, such as Medicare and Medicaid, and from commercial payers. The company is also subject to comparable foreign regulations.
In addition, with respect to the company’s specialty home medical supplies business, it is subject to certain state licensure laws (including state pharmacy laws), and also certain accreditation standards, including to qualify for reimbursement from Medicare, Medicaid, and other third-party payers.
As a distributor of controlled substances, the company is required, under the Controlled Substances Act, to obtain and renew annually registrations for its facilities from the United States Drug Enforcement Administration (‘DEA’) permitting it to handle controlled substances. The company is also subject to other statutory and regulatory requirements relating to the storage, sale, marketing, handling, reporting, record-keeping, and distribution of such drugs, in accordance with the Controlled Substances Act and its implementing regulations, and these requirements have been subject to heightened enforcement activity in recent times. The company is subject to inspection by the DEA. Certain of the company’s businesses are also required to register for permits and/or licenses with, and comply with operating and security standards of, the DEA, the FDA, the United States Department of Health and Human Services (‘HHS’), and various state boards of pharmacy, state health departments, and/or comparable state agencies, as well as comparable foreign agencies, and certain accrediting bodies, depending on the type of operations and location of product distribution, manufacturing, or sale. These businesses include those that distribute, manufacture, relabel, and/or repackage prescription pharmaceuticals and/or medical devices and/or HCT/P products, or own pharmacy operations, or install, maintain, or repair equipment.
In addition, Section 301 of the National Organ Transplant Act, and a number of comparable state laws, impose civil and/or criminal penalties for the transfer of human organs, as defined in the regulations, for valuable consideration, while generally permitting payments for the reasonable costs incurred in their procurement, processing, storage, and distribution. The company is also subject to foreign government regulation of such products. The DEA, the FDA, and state regulatory authorities have broad inspection and enforcement powers, including the ability to suspend or limit the distribution of products by its distribution centers, seize or order the recall of products, and impose significant criminal, civil, and administrative sanctions for violations of these laws and regulations. Foreign regulations subject the company to similar foreign enforcement powers.
On medicines for humans, the company is regulated under Directive No. 2001/83/EC of 6 November 2001, as amended by Directive 2003/63/EC of 25 June 2003, and EU Regulation (EC) No. 726/2004 of 31 March 2004.
The company is also subject to certain United States and foreign laws and regulations concerning the conduct of its foreign operations, including the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, German anti-corruption laws, and other anti-bribery laws and laws pertaining to the accuracy of its internal books and records, which have been the focus of increasing enforcement activity globally in recent years.
The company is directly or indirectly subject to numerous and evolving federal, state, local, and foreign laws and regulations that protect the privacy and security of personal information, such as the federal Health Insurance Portability and Accountability Act of 1996, as amended, and implementing regulations (‘HIPAA’) under which parts of its business are covered entities or business associates, the Controlling the Assault of Non-Solicited Pornography and Marketing Act (‘CAN-SPAM’), the Telephone Consumer Protection Act of 1991 (‘TCPA’), Section 5 of the Federal Trade Commission Act (‘FTC Act’), the California Privacy Act (‘CCPA’).
Also, the European Parliament and the Council of the EU adopted the pan-European General Data Protection Regulation (‘GDPR’), effective from May 25, 2018, which increased privacy rights for individuals (‘Data Subjects’), including individuals who are the company’s customers, suppliers, and employees.
The company has substantially compliant programs and controls in place to comply with the U.S. state and federal privacy laws and applicable international privacy laws, such as GDPR and PIPL; its compliance with data privacy and cybersecurity laws is likely to impose additional costs on the company.
The company also sells products and services that health care providers, such as physicians and dentists, use to store and manage patient medical or dental records. These customers, and the company, are subject to laws, regulations, and industry standards, such as HIPAA and the Payment Card Industry Data Security Standards, which require the protection of the privacy and security of those records.
Qualification for the MIPS incentive payments requires the use of EHRs that are certified as having certain capabilities designated in evolving standards adopted by CMS and the Office of the National Coordinator for Health Information Technology of HHS (‘ONC’). Certain of the company’s businesses involve the manufacture and sale of such certified EHR systems and other products linked to government-supported incentive programs. In order to maintain certification of its EHR products, the company must satisfy these changing governmental standards.
The company is also subject to certain laws and regulations concerning the conduct of its foreign operations, including the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, German anti-corruption laws, and other anti-bribery laws and laws pertaining to the accuracy of its internal books and records, as well as other types of foreign requirements similar to those imposed in the United States.
Proprietary Rights
The company holds trademarks relating to the ‘Henry Schein’ name and logo, as well as certain other trademarks.
History
Henry Schein, Inc. was founded in 1932. The company was incorporated in 1992.
