THE FUTURE OF PPE
JHC: What are some other parts
have the ability to dictate the specifications
effectively build and plan capacity to
of Premier’s strategy to invest in
of certain supplies or products, and we go
meet long-term demand, and create
domestic and geographically
factory-direct to the country of origin and
adequate redundancy and safety
diverse suppliers of PPE?
work with manufactures to produce these
stock to ensure a continuous supply
Alkire: Premier’s approach is about bal-
products to their specifications. This cre-
of product for customers; and
ance, ensuring that supplies come from
ates an alternative sourcing channel for our
3. I nvest alongside manufacturers to
diverse regions, countries and continents,
members, while providing financial incen-
help alleviate the financial strain
and, for some critical products, demand-
tive and security to the manufacturers.
associated with bringing these older
ing at least one domestic source. Our
drugs to market.
investment with our members in Prestige
In early 2019, Premier launched Provi-
Ameritech is part of a larger, overarch-
deGx to address drug shortages. The
One key tenet of the ProvideGx
ing Premier initiative to ensure a healthy
ProvideGx model allows Premier to:
program is prioritizing manufacturing of
supply chain through diversification, which
1. Utilize unique contracting
we’ve been talking about for over a decade.
mechanisms to incentivize
possible. Sixteen of the 18 drugs brought
As an example, we’ve operated a company
manufacturers to enter the
back to market through ProvideGx in
called S2S Global for nearly a decade, and
marketplace for shortage drugs;
its first year were manufactured in the
it is grounded in global and dynamic sourcing. Through S2S Global, our members
these drugs in the United States where
2. Align a committed group of
United States.
members with a manufacturer to JHC: How will healthcare look different moving forward as a result of what has happened with supply/demand of PPE? Alkire: The pandemic has shed a light on how the United States is overly reliant on overseas markets for a host of goods, with less than 10% of isolation gowns made in the U.S. and less than 10% of disposable PPE products made in the U.S. Going forward, Premier will ensure that our nation is going to have access to a healthier and more predictable supply chain, which will include domestic capacity and geographic diversity for critical medical supplies.
PPE products critical for the daily operations of health systems are overwhelmingly sourced overseas, with approximately 80% coming from China and Southeast Asia, Premier said in a release. “The risks of this overreliance on Asia came into sharp focus as COVID-19 swept across the globe and these nations closed borders and prevented U.S. access to supplies, triggering widespread shortages of PPE needed to protect healthcare workers and patients. In contrast, Prestige Ameritech represents a domestic supply chain, with production completed in the United States. Prestige also sells 100% of its products to U.S. customers.”
Many healthcare providers rely on a “just-in-time” inventory process that is going to change, whether due to federal guidelines, state regulations or more sophisticated supply chains. Providers will work more closely with their supply chain partners and group purchasing organizations to ensure diversified sourcing, as evidenced by Premier’s investment with its members in Prestige Ameritech.
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August 2020 | The Journal of Healthcare Contracting