By Chaun Powell, Group Vice President, Strategic Supplier Engagement, Premier Inc.
Healthcare providers are working around the clock to safely care for patients during the COVID-19 pandemic, and the last thing they need to worry about is whether their products are reliable, safe and legitimate.
Unfortunately, a grey market is amassing around personal protective equipment (PPE), as unauthorized, third-party sellers hawk masks, gowns and other scarce supplies at a markup. And not all of these supplies are what they appear to be.
The following are ways health systems can protect against COVID-19 scams:
Check that the product is registered with the U.S. Food and Drug Administration (FDA).
With the exception of industrial N95s, which have only recently and temporarily been permitted for emergency use in healthcare by the CDC, all other PPE including surgical masks, face shields, surgical gloves and gowns, isolation gowns, caps and shoe covers must be registered with the FDA. If the supplier is unable to provide demonstration of FDA registration, then it is not permitted to legally market that product for sale or use in healthcare in the United States.
If an offer is too good to be true, it probably is.
Be wary of any sellers who approach you with products for sale outside of your usual supply chain channels and stick with those vetted marketplaces that have an existing integral supply chain including traditional wholesalers, group purchasing organizations or trusted e-Commerce platforms. Those claiming to have products that no other legitimate source can access are most likely trafficking in suspicious products or products from suspicious sources.
Understand risks.
Fully understand the risks the grey market can pose to your patients and the facility, including the possibility that supplied products may be counterfeit, stolen, diverted, mishandled or adulterated. Engage with your legal and risk management departments to better comprehend the differences between a legal and an illegal operation.
Develop and communicate a policy for purchasing decisions.
Develop a policy for how you will decide which distributors and suppliers to do business with. Carefully consider and document exceptions that may be allowed to your existing policy, such as emergency loans from other hospitals or purchases from sources outside of normal suppliers and distributors. Communicate the policy and process for any exceptions to administration, medical staff, nursing, pharmacy staff, the purchasing department and any other key stakeholders.
When in doubt, check it out.
Unscrupulous sellers may be offering products that look like the original manufacturer’s items but aren’t. Counterfeiters can be very sophisticated and replicate packaging to look almost identical to the real thing. If you are not sure of a product’s legitimacy, contact your GPO and have them vet the offer with the original manufacturer. Premier’s relationships with manufacturers allows us to investigate the authenticity of the origin of the products. If the product’s origin can’t be verified, we do not recommend that you proceed with the purchase.
Compare and scrutinize purchases.
Whenever a purchase is made from a new supplier, compare and scrutinize the package; the label, including font, color and size; and the contents. If the product label appears to have been altered, has residue or doesn’t appear consistent with earlier purchases – or if the content itself shows these signs and appears to be different – question its authenticity. Also, listen to patients, who can also detect abnormalities.
Keep records of suspect organizations.
Keep records of any vendors you have refused to do business with and reasons for those decisions, to provide purchasing staff with a resource to check prior to making purchases. In addition, report any suspect suppliers that may be trafficking in counterfeit, stolen, diverted or adulterated product to appropriate local, state or federal law enforcement authorities.
Examples of grey market offers Premier has seen scammers send healthcare providers during COVID-19
View all of Premier’s COVID-19 resources and news coverage here.