Beginning in 2025, the U.S. supply chain is expected to see two major shifts that could both raise costs and reduce supply availability for medical practices.
During his campaign, President-elect Donald Trump made several propositions for the economy, including tariffs on foreign-made goods that could make virtually everything made abroad more expensive for Americans. Mr. Trump has suggested raising tariffs by at least 25%, which could rise to 100% on goods made in Mexico, in his next term.
Some logistics experts have said Mr. Trump’s economic and international policies could bring another round of restructuring to global supply chains.
In addition, logistics leaders are keeping an eye on a possible strike by the International Longshoremen’s Association at ports from New England to Texas that could begin in mid-January. Following a three-day ILA strike in October, supply congestion lasted weeks.
On top of that, several practices, including orthopedic practices, are still reeling from shortages caused by Hurricane Helene after it damaged a Baxter manufacturing plant in North Carolina in September.
Currently, hospitals are getting about 40% of their normal saline shipments in the wake of the plant damage, and while manufacturing has resumed, Baxter said it will take time for production to ramp up and reach the site's pre-Helene output levels, causing some orthopedic facilities to cut certain procedures amid IV fluid shortages.
Anthony Tortolani, MD, a cardiac and thoracic surgeon and professor of clinical cardiothoracic surgery at Weill Cornell Medical College in New York City, told Becker's he believes the possibility of new tariffs and supply chain pressures will make it even more difficult for independent practices to survive in 2025.
Matt Kraemer, administrator at the Orthopedic & Spine Institute of Northern Arizona Healthcare in Flagstaff, discussed with Becker's some of the ways his practice is bracing for major disruptions, including prioritizing fewer disposable surgical instruments.
"Like many other organizations in all industries doing business in the United States, we need to be proactive to establish contingency plans in sourcing supplies from different regions in order to avoid disruptions," he said. "New tariff plans may absolutely impact our overall supply costs and change our operational approach to leverage economies of scale. Reusable supplies versus disposable options where available may be an example of strategic changes.
"Prior to Hurricane Helene and the resultant IV fluid shortages, we had noticed supply chain improvements steadily since COVID. However, shortages impacting fluids and gloves recently has led to challenges and increased maneuvering with our supply chain and buyers."