HIDA
BY MATTHEW J ROWAN, HIDA PRESIDENT & CEO
Securing Critical Items HIDA proposes a solution to getting PPE to where it belongs – in the hands of healthcare providers
The availability of personal protective equipment (PPE) has improved signifi-
Sustainable stockpiles are a key element
cantly since the onset of the coronavirus, but as COVID-19 continues to spread, health-
of the plan. Under HIDA’s proposal, re-
care providers are stockpiling available product to prepare for spikes in new infections.
serves of PPE and other critical products would be held at 500 commercial distribution centers located around the country.
These well-intentioned initiatives seek
These reserves would be designed to meet
to prevent future PPE shortages. In real-
first-call needs of providers for the first
ity, creating large provider-held stockpiles,
30 to 60 days of an emergency.
even as COVID-19 cases are increasing
During those initial days of a pandemic,
throughout the country, will contribute to
the country could then mobilize expanded
ongoing PPE shortages by taking supplies
surge manufacturing capacity to meet the
in high demand on the front lines to the
increased and ongoing equipment demands
back shelf of a warehouse.
of the emergency. Once the surge manufac-
It is completely understandable that
turing capabilities are brought up to speed
health systems do not want to find them-
and expand production, they could then support and replenish the third pillar of the
challenging as states such as California and
Distributors offer experience in strengthening pandemic preparedness
New York institute stockpiling require-
A better approach is something that is
and to serve as an overall backstop to the
ments. California Gov. Gavin Newsom
happening across the country – leveraging
commercial supply chain, if needed.
enacted a law in September mandating
the proven expertise of health indus-
hospitals keep a 90-day supply or be subject
try distributors. Distributors have the
would help prevent the competition for
to a $25,000 fine. New York now requires
infrastructure ready to provide storage,
PPE among the different consumers of
hospitals to keep reserves that would cover
logistics support, and expertise to manage
PPE, such as healthcare providers, local
90 days of patient care and nursing homes
costs as well as operational and logistics
governments and retailers, rather than
to set aside enough equipment for 60 days.
issues. All this can be done while building
leading them to bid against one another
a new national pandemic response infra-
during an emergency.
selves short on PPE, but securing these critical products has become even more
These types of requirements are adding to shortages and placing demands on
structure capable of replenishing supplies.
hospital space and finances that could be
Throughout the COVID-19 pandemic,
system: centralized stockpiles designed to support state and local government needs
Finally, end-user aligned supply chains
We are all in this together. By combining government resources with distributor’s
better used for patient care. For a 350-bed
distributors have proven to be trusted part-
infrastructure and expertise, we can better
hospital, a 90-day stockpile of a typical
ners with both healthcare providers and
position the nation to address our current
mix of PPE would fill 13 to 15 tractor-
government planners in delivering quality,
challenges and the ones yet to come.
trailers with an amount of space that is
FDA-approved products to providers.
To learn more about HIDA’s proposal
impractical at most hospitals that size.
HIDA has outlined a new vision
“Building A More Robust Supply Chain: A
A 5,000-bed system of 10-12 hospitals
for a pandemic response infrastructure
Public-Private Framework To Create A Pan-
would need the equivalent of one and a
that supports a partnership between the
demic Response Infrastructure,“ visit HIDA.
half football fields of space.
commercial sector and the government.
org/UnderstandingHealthcareDistribution.
The Journal of Healthcare Contracting | December 2020
43
