HIDA
Three Steps to Creating Your Own Strategic Stockpile
BY ELIZABETH HILLA, HIDA SENIOR VP
As the nation begins to see the light at the end of the tunnel on COVID-19,
A single 350-bed hospital creating a 90-day
government and industry leaders are assessing the historic healthcare supply challeng-
stockpile of a typical mix of PPE would
es presented during this pandemic. To better prepare for the future, federal and state
need to buy and maintain 13-15 tractor
officials are considering improvements to preparedness capabilities like the Strategic
trailers of storage space. To meet the same
National Stockpile and regional stockpiles, but healthcare providers are taking proac-
obligation, a 5,000-bed hospital system of
tive steps now to collaborate with their distributor partners.
10-12 hospitals would need the equivalent of 1½ football fields of space. To prepare for future pandemics
From major systems to smaller providers, procurement professionals are engaging
ʯ How will you replenish it? ʯ How many days’ inventory will you
and to manage costs, many healthcare providers are contracting to use their
with their medical products distributors
need during a non-pandemic year?
distributor’s available warehousing capa-
to discuss how to better manage future
ʯ Can you fund it over multiple years?
bilities. Healthcare distributors currently
supply disruptions. Here are three steps providers can take to build and maintain
operate 76 million square feet of wareA thorough exploration of these
house space at 500 distribution centers
their own strategic stockpile of critical
issues can help providers establish the
across the country. Providers can work
medical supplies.
foundation for a sound stockpiling plan
with distributors to access this capacity
with their distributor. Once that plan is
for their own dedicated supply of medi-
established, it will be necessary to work
cal products, which can increase storage
Conduct a stockpile audit
together to identify the most efficient way
and delivery efficiencies.
As shortages of PPE begin to ease, it’s an
to implement it.
excellent time for providers and dis-
Create trusted partnerships
tributors to collaborate on an analysis of current supply levels of critical medical
Utilize existing infrastructure
One vital lesson learned during this pan-
products and an updated reserve strategy.
Healthcare providers that are establish-
demic is how important it is for healthcare
Providers can use the experience and
ing the physical space necessary to store
providers to have strong, established
data of the past year to answer important
and replenish stockpiled medical supplies
relationships with supply partners before an
questions about their supply needs:
could face high upfront costs and signifi-
emergency occurs. For example, when COV-
cant long-term expenses.
ID struck and supply was diminished, many
ʯ Does your definition of PPE align with your distributor?
ʯ Which critical medical supplies do you need?
ʯ How will your distributor provide it? ʯ What is the most cost-effective way to store and maintain it?
ʯ How will you use it?
According to commercial real estate giant CBRE, “Warehouse vacancy rates are sinking and rents are soaring” due to
providers turned to unknown brokers who often did not deliver promised products. The time to establish those trusted
historically high demand for storage space.
partnerships with the full range of supply
That presents a major challenge given how
entities – from a provider’s prime vendor
much warehouse capacity a hospital or
distributor through relevant government
hospital system may need for a stockpile.
agencies – is now.
The Journal of Healthcare Contracting | June 2021
51
