Hospital finance, supply leaders predict 15% increase in tariff-related costs
Read Article: Modern Healthcare
Article Summary: A survey conducted by Black Book Market Research found that 82% of healthcare industry experts expect tariff-related import expenses to significantly raise hospital and health system costs by 15% in the next six months. Tariffs on products from Canada, Mexico, and China (the world's largest producer of active pharmaceutical ingredients) are predicted to cause disruptions across various sectors within healthcare.
The Risk:
Increased Operational Costs for Hospitals: Tariffs on medical supplies, pharmaceuticals, and equipment will likely increase operational costs for hospitals and health systems. This is particularly significant as 90% of hospital finance leaders anticipate needing to pass on these increased costs to payers and patients, potentially leading to higher service charges and patient dissatisfaction.
Supply Chain Disruptions: 90% of supply chain professionals expect major disruptions in procurement processes, which could create delays in receiving critical supplies and equipment. These delays could impact the timeliness of care and patient outcomes, especially in a high-demand, time-sensitive environment like healthcare.
Delayed Equipment and Technology Upgrades: 94% of healthcare administrators foresee needing to either delay or buy less equipment, which could lead to outdated medical technology and affect the overall quality of care. This may hinder hospitals’ ability to keep up with digital transformation and improve care delivery.
Disruptions in Pharmaceutical Supply and Costs: Due to tariffs on Chinese imports, particularly pharmaceutical products, 70% of survey respondents expect a 10% increase in pharmaceutical costs. This may disrupt drug availability and lead to higher medication prices, adding strain to healthcare budgets and possibly affecting patient access to medications.
Regulatory Delays and Supply Chain Complications: 92% of drugmakers believe that switching to alternative suppliers could cause regulatory delays and supply disruptions, which might lead to stockouts and delayed treatment delivery. This could affect patient care continuity and create logistical challenges for healthcare providers.