A Fluid Situation
As of press time, we were still not out of the woods when it comes to the global spread of COVID-19. Not by a long shot. While nations such as China and South Korea were expressing optimism that they had gotten things under control, Italy and Israel were on lockdown, and here in the United States testing for the disease was just beginning to ramp up.
And even when we do get a handle on containing the disease, there will be plenty of long-term implications, including the supply of products and services in healthcare. For instance:
- Supplies of PPE. In early March Premier released results of a survey finding that 86% of U.S. hospitals and health systems are concerned about their supply of face masks and other personal protective equipment (PPE) as the global spread of the COVID-19 coronavirus strains the supply chain. According to Premier’s purchasing data, hospitals and health systems across the United States typically buy 22 million N95 face masks a year. However, during the months of January and February, demand for N95s surged, up 400% and 585%, respectively, largely fueled by a heavy flu season and forward buying in anticipation of a coronavirus outbreak in the United States. The levels of demand suggest a minimum consumption rate of 56 million masks in 2020, nearly a three-fold increase in demand when compared to a typical year.
- Pharmaceuticals. Modern Healthcare reported in early March that the Indian government may hold 26 pharmaceutical ingredients and drugs made from them amid supply concerns stemming from the coronavirus, stretching an already fragile pharmaceutical supply chain. Much of the world’s supply of generic drugs comes from India, which relies heavily on China for their active pharmaceutical ingredients, according to the report.
What does this mean for supply chain departments across the nation? In the event of possible disruptions and shortages, communication and collaboration with suppliers has never been more important. Do IDNs and health systems have a good grasp on their inventory levels? If supplies are low, what are some viable alternatives? Is there a plan in place for disaster response? These are just some of the many questions we’ll be looking at in the weeks and months to come.