COVID-19’s Impact on
Healthcare: Disruption
of the Supply Chain
and the PPE Shortage
By Kelly M. Pyrek
D
espite personal protective equipment (PPE) availability
being so critical in normal utilization and in outbreak
scenarios, about 80 percent of PPE comes from Asia, where
many nations have stopped exports due to the COVID-19
pandemic. Government officials and health authorities are
working with distributors to prevent hoarding of gowns,
gloves, face shields and face masks, and are encouraging
healthcare systems and institutions to initiate conservation
protocols to stretch PPE supplies.
“Supply chain organizations, no matter how prepared,
experienced significant disruptions from the massive and
growing impact of COVID-19,” acknowledges Li Ern Chen,
MD, a physician advisor on the board of the Association for
Healthcare Resource & Materials Management (AHRMM).
“They are currently focused on procuring and distributing PPE
across their organizations. This challenge is increasing daily as
supply chains fight to keep up with the needs of the clinical
world. We are also seeing price-gouging, which coupled
with a global shortage of necessary supplies, has made value
analysis obsolete in dealing with this virus. Meanwhile, as
elective surgeries are being delayed to allow hospitals to focus
resources on the COVID-19 outbreak in their communities,
orders for those supplies will plummet.”
In mid-March, Premier Inc. released survey results finding
that 86 percent of U.S. hospitals and healthcare systems
are concerned about their supply of face masks and other
articles of PPE as the global spread of COVID-19 strains the
supply chain.
According to Premier’s purchasing data, U.S. hospitals
and healthcare systems typically buy 22 million N95 face
masks a year. However, during the months of January and
February 2020, demand for N95s surged, up 400 percent
and 585 percent, 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.
According to data collected by Premier from distributors,
most healthcare facilities currently receive just 44 percent of
the N95s and 82 percent of the surgical masks they order.
Domestic and near-shore suppliers of PPE have increased
production and are on track to produce an estimated 60
million masks this year. However, reaching that production
level will take between 30 days and 60 days.
Because of the domestic backorders and the sharp
reduction of imported goods, 36 percent of respondents to
the Premier survey are preparing for broad-scale PPE shortages,
and 54 percent have initiated PPE conservation protocols
to stretch the supplies on hand. In addition, 46 percent of
28
respondents say they are worried about how long current
supplies will last.
“Sitting at the center of healthcare, helping manage more
than $61 billion in healthcare spend, Premier serves as an early
warning system for the supply chain,” said Michael J. Alkire,
president of Premier, Inc., in a statement. “We have provided
these survey results to the Food and Drug
Administration (FDA) and the Centers
for Disease Control and Prevention
(CDC) to help them better understand
the current situation and prepare our
nation’s response to coronavirus. We
also continue to provide daily updates
to our members, as well as assistance
We encourage
in obtaining necessary supplies on an
all
hospitals
and
as-needed basis. Because this situation
is rapidly evolving, we encourage
healthcare systems to
all hospitals and healthcare systems initiate conservation
to initiate conservation protocols to
protocols to protect
protect stock on hand and refrain from
stock on hand and
panic-buying that can further strain the
supply chain.”
refrain from panic-
About 80 percent of all PPE man-
buying that can
ufactured globally comes from Asia,
where nations such as China, Taiwan, further strain the
Thailand, India and South Korea have all
supply chain.”
stopped exporting products, a situation
— Michael J. Alkire
expected to continue through April, if
not longer. While masks are expected
to be in short supply for some time,
Premier’s S2S Global direct sourcing
company is ramping up inventory on
hand for disposable protective apparel
such as isolation gowns and gloves in an-
ticipation of increased member demand.
Many PPE
“Many PPE supplies are heavily back-
ordered and global shortages exist for
supplies are heavily
specific products such as N95 masks,”
backordered and global
said David A. Hargraves, Premier’s senior
vice president of supply chain services in shortages exist for
a statement. “So far, our members have
specific products such as
been able to work with manufacturers
N95 masks.”
and distributors to mitigate many issues.
— David A. Hargraves
But supply is unquestionably strained
and health systems are going to
extraordinary lengths to provide essential healthcare for their
communities. Our data shows Premier members have at least
two weeks of supply on hand, but that’s only if we assume
current utilization rates. That number will quickly balloon if we
have a domestic outbreak of coronavirus, as the Department
april 2020 • www.healthcarehygienemagazine.com