Why The Supply Chain Needs to Come Back to The United States

This research report was compiled by Sue Farkas and Jim Cagliostro.

In 2019, it was predicted that supply chain costs would overtake labor expenses as the #1 cost in US healthcare in 2020. Already aware of this growing trend, health systems have long sought out new strategies to dramatically cut costs in this critical area.

That has often led to a reliance on international sources of supply in an attempt to alleviate the financial pressure on hospitals. While understandable, this strategy has resulted in a supply chain which is often complex, highly fragmented and vulnerable to unexpected disruption.

The 2020 COVID-19 pandemic, while not the root cause, has exposed the full extent of these vulnerabilities.

While reducing cost and sustaining profitability must remain priorities, this should not be at the expense of patient safety and patient care. Profits should never come before patients—a belief which underpins the decision making processes of some of the most successful health systems in the world.

This report was prepared in the light of a growing concern that the US supply chain has overstepped its reliance on global resources. It is a dependence that further complicates an already fragile supply chain and puts the health of patients at increased risk. In this report, we examine the current state of the US supply chain and examine it vulnerabilities, before considering the status of the nation’s emergency preparedness. Finally, we offer strategies and solutions for your organization to consider in the context of a post-pandemic supply chain audit.

Since 1999, VIE Healthcare® has successfully partnered with hospitals to identify cost savings in the supply chain. It is not an easy task and solutions are often complex, but it is achievable.

Schedule a call today: Please reach out directly to me to discuss the ways in which we can support your organization in the transformation of your supply chain.