U.S. government tariffs on imported goods are about to hit healthcare supply chains hard. The situation is clear: imported products will become more expensive with longer lead times, while demand for U.S. manufactured goods will outpace supply capabilities. The math isn’t complicated; disruption is coming. Rising supplier mergers and acquisitions and cuts to healthcare funding only compound the problem, putting additional strain on already tight hospital budgets.
U.S. imports of pharmaceuticals and medical equipment, products, and supplies in 2019 1
China’s 9.2% share of U.S. imports likely understates the extent to which the United States relies on China for pharmaceuticals and medical equipment, products, and supplies because of how these imports are classified.
With prices set to soar and 56% of supply chain leaders facing higher cost-saving targets than last year, the question isn’t whether there’s a problem—the question is how to solve it.
The 2025 Supply Chain Survey confirms what experienced professionals already know: 36% of healthcare supply chain leaders rank supply chain disruptions as their primary concern for 2025, outranking traditional cost concerns. 69% predict these disruptions will continue or worsen in the coming year.
While these statistics might paint a concerning picture, seasoned supply chain experts recognize that disruption is manageable with the right approach. As Dee Donatelli, symplr’s Senior Director of Spend Management, puts it, “Disruptions are probably something that are always going to occur. So, we need to think through how our process and our organization are prepared for disruptions. How do I rethink my staff; how do I rethink my organizational optimization to deal with the everyday issue of disruption?”
22%
of supply chain leaders say standardization is their top priority for 2025
Industry veterans recognize that traditional cost-saving approaches—simply trying to negotiate lower vendor prices—won’t build true resilience. The solution requires more comprehensive thinking. By streamlining product choices and decision processes, healthcare organizations can reduce dependency on volatile supply chains, cut costs, and improve efficiency.
Start by risk-stratifying your inventory. Analyze what’s truly critical and determine your risk tolerance for each category. As Mike Schiller, Executive Director at AHRMM, explains, “Identify those products that are critical, and then what is your risk tolerance for those items. That’ll drive your strategy; some strategies will be building an inventory reserve, others may be multiple sourcing opportunities or multiple contracts for that product or products in that category.”
Take a hard look at your actual product usage patterns. Which items are consistently utilized? Which collect dust? Once you understand exactly which products you use and in what quantities, you can standardize inventory based on real needs, rather than assumptions. Is your inventory reflecting actual utilization, or can you reduce order quantities while maintaining essential safety stock?
Understanding risk tolerance means making informed decisions about which products require multiple sources and which can be consolidated. Most facilities will discover consolidation opportunities across multiple categories and facilities.
Dr. Hudson Garrett Jr., Executive Director and Executive Vice President of AHVAP, notes, “I had a conversation with someone who discovered about 66% of their intravenous bag usage in the ED wasn’t clinically necessary. That’s valuable clinical outcome data. Get your research folks involved and make a care flow process that transforms utilization. The patient gets exactly what they need; if oral hydration is an option, let’s move forward with that.”
A central contract repository forms the foundation of contract standardization. Supply chain teams need automated methods to track contracts approaching renewal or expiration. These transition points create opportunities for consolidation, for tying prices to indexes to build inflation resilience, and for including key performance metrics that align supplier and health system goals.
In times of disruption and increased cost pressures, a standardized decision support process is essential. It maintains control over which products enter the system, at what price, and allows comparison based on clinical evidence, cost, and availability.
Supply chain leaders must maintain precise spending visibility. When shortages drive prices up, thorough budget planning becomes crucial. Know exactly where every dollar goes.
External forces—tariffs, inflation, funding reductions, natural disasters—will continue to challenge healthcare supply chains. But organizations aren’t powerless. Standardization creates stability in an otherwise volatile landscape.
Dee Donatelli emphasizes, “It’s crucial that we standardize processes, not just in the supply chain office, but in patient care and the products we use. Standardization and driving efficiency are absolutely the top strategies supply chain professionals face today.”
Standardization isn’t just industry jargon. It’s the difference between constantly reacting to crises and preventing them before they occur. The time for action is now.
See the comprehensive set of supply chain solutions available through symplr.
