Disclaimer – The following article is based on informational purposes only. Readers are advised to take proper precautions to ensure safety against CoronaVirus.
Forgery of face masks and shortages of hand sanitizers are some of the huge effects on healthcare supply chains worldwide. The Coronavirus keeps on affecting the markets in different ways.
It goes without saying that the supply chain in the healthcare industry is suffering from acute troubles due to the international health crisis. Most hospitals and other healthcare facilities are having trouble to procure, source and manage stocks of basic medical equipment to deal with the virus.
According to Dee Donatelli, vice president of Professional Services, TractManager, and Chief Medical Officer, Mark S. Kestner, the outbreak is adding more pressure on the already expensive and inefficient processes of procurement. Hence, its consequences may last several years after the end of the crisis.
The Healthcare industry is having a huge crisis in its supply chain like other industries due to coronavirus. But healthcare facilities are affected in several ways with it.
Inventory Impact in Supply Chain
According to Kestner, the dependence of the healthcare industry on foreign equipment suppliers has made it highly exposed to the risk of coronavirus. He asked, “What we can do when the whole supply chain depends on foreign markets?”
The impact of coronavirus affects the product sourcing and supply chain consequences which were also seen in Hurricane Maria in 2017 which destroyed Puerto Rico, the key supplier of IV supplies in the US. Hence, procurement officials were helpless to fill demand from other markets.
Supply chains are suffering great disruptions once again with the current endemic. According to Kestner, most of the software programs for facilities come from China. In addition, procurement teams end up squeezing in the supply of products like face masks. They are also sourcing from vendors which are not affected by a coronavirus.
According to Donatelli, we need to assess more than just sellers of these products. At the same time, raw material providers, as well as manufacturing facilities, may also be affected and consequences may flow up the supply chain. It is just the beginning of how it will affect healthcare as we rely more on foreign markets. These days, hospitals are trying hard to address the need for proper healthcare.
Wasted Spend and Inefficiencies
Healthcare facilities stock up the products available by considering the tight demand. Hospitals are doing it without worrying about their budget. But that kind of impulse buying may add financial strain to the healthcare industry due to procurement inefficiencies and wasted spending. These days, every hospital is overstocking essential protection devices these days, despite their budgets.
Each doctor has their own preference card which lists all the devices they would need for the procedure. But the problem is when these devices will be unused and opened and, in the end, thrown away. Due to this reason, facilities are also forced to source and procure supplies.
Medibrandox is the leading healthcare marketing company engaged in connecting doctors and healthcare professionals with patients to help cope with the existing crisis due to the Coronavirus outbreak.