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$1.5M in medical-supply damage

Lap sponge, 1996

Lap sponge, 1996 Credit: Newsday

A Brentwood maker of disposable medical products faces a loss of nearly $1.5 million due to weather-related water damage at one of its warehouses in Tennessee, the company said in a Monday report to federal regulators.

Medical Action Industries Inc. told the Securities and Exchange Commission that it filed an insurance claim for the damage but the claim was denied.

"We have since filed an appeal with our insurer and our insurance broker has submitted a claim on our behalf under their errors and omissions policies. Final resolution on this issue, subject to a $500,000 deductible, is anticipated within the next six months," said the SEC report, submitted by Charles Kelly Jr., the company's chief financial officer.

The damage occurred at “an off-site warehouse used to store finished goods inventory near Medical Action's Tennessee production facility." The company has a factory in Gallaway, Tenn.

Medical Action Industries makes dozens of products including sterilization and intravenous kits, sponges, hats for newborn babies, patient slippers and burn dressings (That's a laparotomy sponge, above, that the company made in the mid-1990s.)

It sells to "acute care facilities in both domestic and international markets, including physician, dental, veterinary offices, outpatient surgery centers and long-term care facilities." 

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