Industry Insights

The ongoing COVID-19 pandemic is ravaging healthcare facilities, which is partly due to a severe lack of personal protective equipment (PPE) and other critical supplies. These shortages have caused such a major disturbance in hospital supply chains that it will likely have long-lasting effects on the healthcare industry. To help prepare for these effects, healthcare facilities should implement a supply chain strategic plan. This will not only be handy for dealing with a potential second wave of coronavirus, which many experts predict might be worse than this initial wave but can also be used to help deal with other future emergencies.

The country’s hospitals & health systems are incurring huge financial losses due to COVID-19. Kaufman Hall’s study from more than 800 hospitals & health systems show that drops in volume and revenue, alongside increasing expenses, brought about a sharp reduction in margins over a few short weeks. Overall, margins fell 170% below budget in March according to the study. Kaufman Hall anticipates the pandemic will have a bigger financial impact in the months ahead.

Although half of the country has seemingly shut down as we attempt to deal with the ongoing COVID-19 outbreak, the healthcare industry is operating at full steam. Unfortunately, this pandemic has led to many issues within the supply chain for healthcare providers, manufacturers, and distributors across the country and the rest of the world.