Medline exits the bed market, estimates costs of up to $220 million
Key Facts
Medline began a voluntary field action on October 14 to remove and discontinue all beds bearing its brand and exit the market, according to a company filing with the Securities and Exchange Commission. The action also covers accessories, parts and packages containing beds within Medline Brand’s “front-of-care” category. The company said the step supports its commitment to product quality and the safety of patients and caregivers. In a later update, the U.S. Food and Drug Administration said the risks include the possibility that electrical components could overheat, potentially leading to smoke, sparks, melting, burning or fire. Some unsecured accessories, controls or rails could also cause entrapment or suffocation.
As of October 20, Medline had reported two deaths and 16 serious injuries related to problems involving the beds and their accessories, according to the FDA. The figures put the reports Medline had cited through that date in the context of the safety warning, but do not mean the company attributed its decision to exit solely to the deaths. The action began six days before this update and covered a broader range than the beds themselves, including related accessories, parts and packages. The FDA also cited an earlier notice about corrections to the instructions for use of home-care beds, published on February 13, 2026. That notice links the current action to an earlier effort to update instructions for use, without changing the scope of the action the company announced in October.
On the financial impact, Medline said net sales of affected products totaled about $60 million in the twelve months ended June 27, 2026. The company estimated costs associated with the action at up to $220 million, which it expects to incur during 2026 and 2027. In its filing, it said the estimate was preliminary and that its range reflected uncertainty about future customer participation. It added that actual customer credits could differ materially from the estimate. The estimated cost therefore exceeds sales of affected products during the period cited, while the final amount will depend on customer participation in the options available to them.
In an October 24 update, Medline revised instructions for handling the affected products and said they could continue to be used under the revised guidance until the bed is repaired or replaced. Options include repairs for some beds, while other customers may receive a replacement or a full or partial refund of the original price. According to the FDA, these options may be available for some beds, rails, mattresses and accessories purchased during the previous five years. Older products remain covered by the action and revised instructions, even if they are not necessarily eligible for the repair, replacement or refund options described for more recent purchases. The instructions call for unplugging the beds from electrical outlets and plugging them in only when needed to adjust the bed’s position, while avoiding the use of extension cords.
Medline said it does not currently expect the action to have a material effect on its financial results for fiscal 2026, including the annual guidance it issued on August 5, 2026. It said costs associated with the action are expected in 2026 and 2027, putting the two-year estimate alongside its current outlook for 2026 results. In trading, the company’s shares closed at $32.37 on October 28, compared with a close of $34.88 on October 22, according to EL7 data. That represents a decline between the closing prices over the period; the data provided do not identify a reason for the move. Repair, replacement and refund options, along with the revised usage instructions, remain the practical focus of the next updates for customers covered by the action.