HDSC Magazine_Fall 2025 by Melissa Blaney

7 FEATURE Domestic Manufacturing: Promise And Progress ON THE COVER Domestic medical manufacturing continues to expand in the United States.

2 SALES & STRATEGY

Preparing For The 2025–2026 Flu Season

Key Market Trends In Physician And Clinical Services: Tariffs, Staffing, And Digital Transformation

4 MARKET INTELLIGENCE

Adapting Under Pressure: Medtech's Strategic Response To Global Trade Shifts

Independent Distributors Plans For The Future

14 COUNCIL CORNER

Adding Value Through Sustainability: What Providers Want To Know

16 WORK IN WASHINGTON

Tariff Actions Expected Well Into Next Year

Stackable Rocks Tariff Infographic

18 EVENTS & RESOURCES

20 FALL 2025 MUST-READS

Please send magazine inquiries to editor@HIDA.org.

By equipping healthcare professionals with accurate, actionable information, sales reps can grow sales and support everyday readiness, which is essential to pandemic preparedness.

Preparing For The 2025–2026 Flu Season

The impact of a moderate flu season appears likely to fall most heavily on children and seniors, making education efforts even more important to overcome vaccine skepticism. Those were key insights from a recent HIDA webinar featuring Dr. Litjen (L.J) Tan, PhD, MS, Chief Policy and Partnerships Officer at the Immunization Action Coalition. Dr. Tan is a nationally recognized immunization policy leader and has spent decades shaping vaccine strategies, including during his tenure at the American Medical Association.

Key Takeaways

Influenza Is Serious

The 2024–2025 flu season already shows a rising burden, with preliminary data revealing an increase in influenza-associated pediatric deaths over the past three years. Alarmingly, nearly 43.2% of pediatric deaths last season occurred in children with no high-risk conditions. Adults 65+ with chronic conditions such as cardiovascular disease, hypertension, renal disease and diabetes are also at greater risk for hospitalization.

Education & Act

Physicians need to make strong, in-office vaccine recommendations before patients leave. Sales reps can provide resources to address skepticism, including data showing that flu vaccines don’t just prevent disease — they reduce hospitalizations, preserve quality of life, and prevent death.

Dispelling Myths

Patients often object with misconceptions: “The flu shot gives me the flu,” “I’m healthy, I don’t need it,” “I’ve never had the flu,” or “The shot doesn’t work.” Sales reps can arm providers with clear, evidence-based responses. For example: the flu shot cannot give you the flu, and even healthy people are at risk of severe illness or spreading the virus to loved ones.

Three Trends Driving Physician Services

The trillion-dollar physicians market faces many of the workforce, trade, and technology issues as the rest of the medical supply chain, according to HIDA’s 2025 Physician Office Market Report. An analysis of survey results and market research by HIDA’s Business Intelligence Department found key trends impacting the cost and delivery of patient care.

Staffing

• Physican practices remain understaffed: 41% report workforce shortages in 2025 (up from 14% in 2020)

• Predicted shortage of 86,000 physicians by 2036

Digital Transformation

• Nearly two-thirds of physicians have used artificial intelligence at least once

• Top use cases: documentation of visit notes, translation services, discharge instructions

• Nearly 80% of practices have increased information technology budgets since 2023 — cybersecurity is top priority

Tariffs

• Due to tariffs, 88% of healthcare executives expect medical equipment costs to rise by double digits in 2026

• 94% plan to delay IT modernization and clinical technology upgrades

$1.05 TRILLION

Expected size of physician and clinical services market in 2025

20% Share of U.S. healthcare spending from physician services accounts

$1.2 BILLION Physician office visits expected by 2031

MARKET INTELLIGENCE

Adapting Under Pressure: Medtech’s Strategic Response To Global Trade Shifts

HIDA data partner Clarivate offers the following insights into how the medical supply chain is adapting to tariffs.

Recent changes in trade policy, particularly under the current U.S. administration, are contributing to heightened uncertainty across international markets. These measures are increasing costs for manufacturers and healthcare providers, while also impacting supply chain stability and global competitiveness, particularly for U.S. exports facing reciprocal tariffs from other countries.

In response, medtech firms are implementing strategic mitigation measures, and many have revised their initial cost impact projections downward. For instance, Boston Scientific reduced its estimated tariff-related costs from $200 million to $100 million, while Johnson & Johnson halved its forecast for its medical device unit.

Medtech Risk And Strategic Responses

Charting A Path Forward

The evolving global trade landscape presents both challenges and opportunities for the medtech industry. While trade policy shifts have introduced cost pressures and operational complexities, the sector has shown resilience and agility through strategic adaptation, ranging from supply chain diversification to targeted cost management. These developments may ultimately serve as a catalyst for transformation, positioning the industry to emerge stronger, more agile, and better prepared for future challenges.

Independent Distributors Plan For The Future

Looking ahead to the year 2035, panelists and participants at the Independent Distributors Summit at Streamlining reflected on the qualities the next generation of distribution leaders will need. The panel featured Brandon Fagnani of Lynn Medical, Peter Loope of Graham-Field and Gregg Rivkind of Federated Healthcare Supply Holdings. Three clear lessons arose from the panel presentation and ensuing discussion.

Invest In Technology

Technology emerged as both a challenge and an opportunity for independent distributors.

• Technology adaptation is the most decisive factor in determining which independents will thrive.

• Cybersecurity is a critical priority. Without defensive systems, the best innovations can grind to a halt.

• Independents that treat technology as a core strategic priority can turn disruption into a competitive advantage.

• While the cost of investment is high, the cost of inaction is higher.

Engage Partners

Partnerships were consistently ranked as the top trend shaping independent distribution.

• Success increasingly depends on intentional, structured collaboration.

• Independents who can guarantee focused engagement, backed by salesforce alignment and market insight, are often more valuable than spreading resources thin across massive accounts.

• Effective partnerships go beyond price negotiations. They involve joint strategy, shared accountability, and consistent communication. Partnerships must evolve from transactional vendor agreements into strategic alliances built on shared goals.

• In a competitive market, independents who double down on trust, alignment, and collaboration will be positioned to compete successfully against larger rivals.

Grow New Leaders

Independent distributors underscored the importance of hiring, rewarding, and retaining people based on shared core values.

• Culture is not a “soft” priority but a competitive advantage. Leaders must invest in developing their employees, because the organization’s success rests on the strength and growth of its people.

• New leaders need skills to define business identity, maintain market focus, and differentiate themselves from competitors.

• The next generation of leaders will need to blend timeless skills with modern agility. They must maintain the personal relationships that have long been the lifeblood of independent distribution while embracing technology, data, and new market dynamics.

Progress And Promise

Top 3 Ways The United States Is Securing The Future Of Healthcare

The U.S. medical supply chain is undergoing a strategic transformation. The industry is prioritizing domestic manufacturing alongside a diversified blend of nearshore and global sourcing. This shift is a direct response to global supply chain challenges and is heavily influenced by current U.S. trade and tariff policies. These policies simultaneously motivate domestic production while creating complex new cost hurdles.

Manufacturing Is Moving Home

The momentum to strengthen U.S.-based production is rapidly growing. Recent announcements prove this shift is already underway, with a portion of critical medical products being made in the USA.

Industry leaders aren’t slowing down. A HIDA 2025 survey highlights strong plans for expansion: 52% of manufacturers plan to expand their domestic footprint within two years, and 67% expect increased domestic manufacturing over the next five.

Overcoming Costly Roadblocks

While the ambition for U.S. production is high, there are still significant obstacles that strain domestic manufacturers:

• Raw Material Scarcity: Access to medical-grade raw materials is often limited, creating a bottleneck for production.

• Punitive Tariffs: Key components and inputs often sourced from overseas are subject to multiple tariffs (such as Section 232 and IEEPA). These tariffs dramatically increase costs on materials that frequently lack domestic alternatives, putting a financial squeeze on U.S. producers.

Shifting To Positive Incentives

To truly unlock the potential of domestic manufacturing, the U.S. needs to shift its strategy. Instead of relying on punitive tariffs, the focus must be on providing positive government incentives to foster sustainable, long-term growth.

Domestic Manufacturing Makes Headlines In 2025

Medical manufacturers have made new investments in domestic production this year, creating jobs and building resiliency into the medical supply chain.

January 2025

BD announced plans for more than $30 million in investments in 2025 to expand manufacturing capacity for IV lines at its plant in Utah to support continued growth in catheter solutions.

May 2025

Siemens Healthineers announced that it will relocate manufacturing operations for radiotherapy systems for its Varian subsidiary from Baja, Mexico to Palo Alto, CA, adding approximately 50 new U.S. manufacturing jobs.

August 2025

Thermo Fisher launched a 375,000-square-foot manufacturing facility in Mebane, North Carolina. The site's high-speed automation enables the production of 96 pipette tips every 12 seconds, culminating in 5,000 assemblies per hour. The expanded facility is expected to create 100 new jobs.

Manufacturing Across America

For this map, HIDA members were asked to submit one of their domestic manufacturing locations to provide a representative sample of manufacturing across America.

U.S. Medical Manufacturing Grows As Industry Exits China

Since August 2024, HIDA has surveyed our members on a regular basis to assess the state of the global medical supply chain, and spot key trends in domestic manufacturing.

98% OF MEDICAL MANUFACTURERS SEE MEDICAL MANUFACTURING EXITING CHINA

OVER THE NEXT FIVE YEARS, 67% OF MEDICAL MANUFACTURERS EXPECT AN INCREASE IN DOMESTIC MANUFACTURING

Share Of Medical Manufacturers Who Expect Domestic Manufacturing Of Medical Products To Increase In Next 5 Years

Manufacturers plan multiple strategies to expand, including expanding production lines at existing facilities, building or acquiring a new plant, reshoring an existing manufacturing line, or creating a new product.

Medical Manufacturers Anticipated Expansion Plans In Next Two Years

52% OF MANUFACTURERS HAD PLANS TO EXPAND THEIR MANUFACTURING FOOTPRINT IN THE UNITED STATES IN THE NEXT TWO YEARS Reshore existing manufacturing

Expand production

Build or acquire new plant

However, domestic medical manufacturing exists within a global supply chain. Domestic manufacturers rely on global partners to supply inputs such as raw materials and key components.

Share Of Medical Manufacturers Who Rely On Raw Materials (In Whole or In Part) From Outside the United States ONLY 2% OF MEDICAL MANUFACTURERS SOURCE ALL OF THEIR RAW MATERIALS FROM

“Advancing the essential role of distribution in a high-performing healthcare industry has never been more important or more challenging.”

SHX Passing Of Gavel To Kelley Moffett

At the annual Chairman’s Dinner during the Streamlining Healthcare Expo, Kelley Moffett, Senior Vice President of Quality, Regulatory, and Medical Affairs at Cardinal Health, was introduced as the 2026 Chairwoman of the HIDA Board of Directors, succeeding Lisa Hohman of Concordance Healthcare Solutions.

In her closing address as 2025 HIDA Board Chair, Hohman reflected on a year defined by progress and partnership. Under her leadership, HIDA expanded its government affairs advocacy on critical issues such as tariffs and the “One Big Beautiful Bill” budget reconciliation act, elevating the industry’s voice in national policy discussions. She championed a renewed emphasis on building resilience within the medical supply chain, ensuring that distributors and manufacturers are better prepared to meet future challenges. Hohman also guided the creation of a new HIDA strategic plan, setting a clear course for the association’s continued leadership in advancing a stronger, more connected healthcare distribution network.

Speaking to the challenges and opportunities ahead, Moffett remarked, “Advancing the essential role of distribution in a high-performing healthcare industry has never been more important or more challenging.”

Moffett leads Cardinal Health’s global quality and regulatory strategy for medical products. Over her 19-year career, she has held leadership positions spanning quality, marketing, product management, and strategy. While she led Global Products within the Global Medical Products and Distribution segment, Moffett managed national brand portfolios, OEM partnerships, medical affairs, research & development, and content marketing.

In her remarks, Moffett highlighted four key priorities for HIDA’s work in the coming year — partner to strengthen collaboration across the supply chain; education to prepare members for a rapidly changing environment; advocacy around a unified set of policy priorities; and informing members through data-driven decision making across the industry.

“These priorities — and the collaboration and expertise in this room — have never been more vital,” Moffett said. “Each of us knows how critical distribution is to the stability and success of healthcare.”

Ken Spett Honored With Sasen Award

Indianapolis Motor Speedway crowns its winners in Victory Lane. HIDA honors its champions with the John F. Sasen Leadership Award.

The Sasen Award recognizes individuals who demonstrate exceptional leadership, commitment, and service to the healthcare products distribution industry and HIDA.

For 2025, the checkered flag waved on Ken Spett.

“Ken leads with both strategy and heart,” said HIDA President & CEO Matthew J. Rowan. “His transformative tenure at Graham-Field has helped shape the company into a respected force in medical products. His influence reaches far beyond corporate walls, as a dedicated leader in industry organizations and public service. Ken's legacy is one of mentorship, excellence, and service to others.”

“In our industry, progress can mean the difference between hope and hardship,” said Spett in his acceptance remarks. “We’re reminded daily of the responsibility we carry. Delivering medical products isn’t just about logistics — it’s about listening to the needs of the entire healthcare continuum, collaborating with providers and facilities, and never settling for good enough.”

Spett has served on the HIDA Educational Foundation (HEF) Board of Directors since 2018 and has held the role of Treasurer since 2022. He is also a member of the Healthcare Manufacturers Network (HMN) and Professional Women in Healthcare (PWH), reflecting his commitment to collaboration and innovation across the healthcare sector.

Spett’s leadership in the private sector has been recognized by leaders in government. In 2022, Spett was appointed by the U.S. Secretary of Commerce to the District Export Council, where he is currently serving a four-year volunteer term supporting the growth of U.S. export initiatives.

Spett has led Graham-Field as Chief Executive Officer since May 2011, as well as serving on its Board of Directors. Across his 50-year career in healthcare distribution, Spett has held multiple roles at Graham-Field, including Corporate Vice President of Marketing, Vice President of the Medical/Surgical Division, Senior Vice President in 2007, Executive Vice President in 2009, and Chief Operating Officer. He holds a Bachelor’s Degree in Economics from Queens College (NY).

Streamlining 2025 In Indianapolis: Racing Toward The Future Of Healthcare

At this year’s Streamlining Healthcare Expo & Business Exchange, industry leaders explored how innovation, strategy, and speed define success in both racing and healthcare distribution. At the home of the legendary Indianapolis 500 race, stakeholders across the continuum of care tackled today’s fastest-moving issues and offered a roadmap for the industry’s next lap forward.

Data-Driven Perspectives On Artificial Intelligence

Artificial intelligence is transforming healthcare through innovations in cancer therapy and pandemic response. However, skepticism remains as many large AI investments have failed to yield measurable financial returns.

• A July 2025 MIT Media Lab report found that despite $30–40 billion in enterprise spending on generative AI, 95% of organizations have seen no business ROI.

• Supply chain professionals should look past hype and focus on areas where AI adds clear value, such as pricing optimization and contract management.

Providers Under Pressure

Nick Hula for The Advisory Board noted that hospitals face unprecedented financial strain due to shifting policy, payment, and utilization trends. Declining reimbursements, growth in Medicare Advantage, and lower physician compensation add to the pressure.

• Nearly 40% of hospitals now operate at a loss, with rural facilities being most vulnerable.

• Suppliers and distributors must adapt as hospitals increasingly view them as strategic partners rather than transactional vendors.

Federal Partners Focus On Resilience

HIDA and the HHS Administration for Strategic Preparedness and Response (ASPR) are collaborating to strengthen the healthcare supply chain. Their joint efforts include a new supply chain security risk assessment project under their cooperative agreement.

• 80% of HIDA members surveyed use a supplier risk assessment questionnaire.

• Strong supplier relationships are the foundation of resilience, enabling detailed risk assessments that address operational, strategic, financial, geopolitical, and cybersecurity risks.

Government Procurement Pathways For Medical Suppliers

Government agencies are expanding access for non-traditional partners through innovative contracting tools such as Other Transaction Agreements (OTAs). These agreements help speed the acquisition of cutting-edge technology.

• In FY2024, more than $18.3 billion was awarded through OTAs.

• Companies seeking federal contracts should balance compliance with proactive engagement, emphasizing networking, persistence, and relationship-building.

“It’s not that sustainability trumps price or quality. It’s that providers want to know if it’s part of the story.”

Adding Value Through Sustainability: What Providers Want To Know

What role does sustainability play in provider sourcing decisions — particularly in categories like environmental services (EVS) and infection prevention (IP)? To help explore this question, HIDA’s EVS and Infection Prevention Council invited Cristina Indiveri, AVP of Core Tenet Programs, Sustainability at Vizient, to share her perspective.

While sustainability may not outweigh cost or quality, Indiveri emphasized that it’s increasingly part of the conversation. Providers are asking more questions, and when a product has a sustainability story, suppliers who can clearly communicate it may stand out. Vizient’s sustainability framework consists of a set of 23 environmental attributes used to evaluate products. Indiveri discussed how providers are beginning to integrate Vizient’s framework or similar considerations into procurement.

Providers Now Consider Sustainability In Sourcing Decisions

While sustainability may not outweigh cost or quality, Indiveri emphasized that it's increasingly part of the conversation. Many providers now include sustainability as one of several factors in sourcing, particularly larger health systems and academic medical centers. It's often part of internal procurement scorecards, bid evaluations, or organizational goals.

How Vizient Evaluates Sustainability

Vizient’s framework includes 23 environmentally preferred (EP) attributes, from chemical content and packaging to certifications like Green Seal and EcoLogo. Products that meet at least one attribute receive a green icon in Vizient’s catalog, and those meeting all relevant criteria receive an “EP+” designation.

This approach supports both providers and suppliers by creating transparency. Hovering over the icon reveals exactly which attributes are met, helping purchasers make more informed decisions and allowing suppliers to differentiate themselves during the bid process.

Scope 3 emissions are the result of activities from assets not owned or controlled by a business corporation, but that the corporation indirectly affects in its value chain. This covers both upstream and downstream activities.

Focus On Carbon Emissions In The Medical Supply Chain

The most prominent trend Cristina noted is a growing focus on carbon emissions. Many providers are starting to track and reduce their environmental impact as part of larger organizational goals, especially when pursuing Joint Commission certification or responding to industry initiatives like the CARES Pledge.

A key area of interest is what’s known as Scope 3 emissions — the indirect emissions that come from an organization’s supply chain, including the manufacturing, packaging, and transportation of purchased products. These emissions often account for the majority of a hospital’s overall environmental footprint, which is why providers are starting to ask more questions of their supplier partners.

Show And Share Your Accomplishments

Sharing your sustainability work — whether it’s product-level information, emissions data, or broader company initiatives — can open doors with providers. As sustainability becomes a more routine part of sourcing conversations, those who are ready to engage may be better positioned to support customers’ long-term goals.

How Are Providers Thinking About Sustainability

• Large systems are hiring sustainability leaders, with some naming Chief Sustainability Officers.

• The Joint Commission’s sustainability certification is gaining attention.

• Some providers are framing sustainability initiatives under the broader umbrella of resiliency or business continuity, focusing on goals like efficiency, cost savings, and preparedness rather than using sustainability-specific language

• Many providers are responding to federal initiatives, such as the CARES (Climate Action, Resilience, and Equity Solutions) Pledge, and are integrating sustainability into core operations.

“No healthcare organization can meet its sustainability goals in isolation — the supply chain is where progress must scale. Suppliers are essential partners in provider’s sustainability journeys.”

Looking Ahead: Tariff Actions Expected Well Into Next Year

The announcement of a a Section 232 investigation into tariffs on medical products is a significant development in trade policy impacting the medical supply chain.

Broad Scope. Covering nearly all non-pharma products like PPE, consumables, and medical devices.

• Lengthy Timeline. A 232 investigation typically takes months to complete. Uncertainty around tariffs will likely continue deep into 2026.

• Significant Impact. Previous 232 investigations into other commodities and industries have resulted in tariffs of 25–100% levied on specific products.

Timeline Of Tariff Dates And Deadlines

September 24: Commerce Department Announces Section 232 Tariff Investigation On Medical Products

October 17: Submission Deadline For Comments On Section 232 Tariffs

November 5: Supreme Court Oral Argument In V.O.S Selections v. Trump Tariff Case

November 10: Pause On IEEPA China Tariff Expires

November 29: Current Section 301 Tariff Exclusions Expire

January 1: Section 301 Tariffs Increase On Chinese Masks (From xx To xx%) And Gloves (From 50% to 100%)

May 30: Statutory Deadline For Commerce Department To Conclude Section 232 Investigation

August 28: Last Day For President Trump To Announce Section 232 Tariffs On Medical Products

Additional Tariffs On PPE Threaten Progress On Diversification

Trade policy is working: Driving domestic manufacturing & supply chain diversification. Majority of medical manufacturers expect to expand domestic production in next two years. Tariffs far exceed the narrow margins on Personal Protective Equipment (PPE).

IEEPA

10-145% Levied throughout 2025

Section 301 25-100%

Since 2018, Next Scheduled Increase Jan 2026

Masks

PPE Already Heavily Tariffed

Gloves

2018: 25%

2025: 25%

2026: 50%

2018: 25%

2025: 50%

2026: 100%

Syringes 2018: 25%

2025: 100%

2026: 100%

Recent U.S. Trade Policies Are Driving Diversification1

67% of medical manufacturers expect an increase in domestic manufacturing in the next five years

98% of medical manufacturers see medical manufacturing exiting China.

52% of manufacturers have plans to expand their footprint in the United States in the next two years

Events & Resources

EVENTS

February 9–11 | Omni Las Colinas | Dallas, TX

MED SUPPLYCHAIN CONFERENCE

February 11–13 | Omni Las Colinas | Dallas, TX

March 10–13 | Bonita Springs, FL (Member-Only)

June 24–26 | Washington, DC (Invitation Only)

Visit the Events & Education section on HIDA.org for more details HIDA’s Virtual Events are recorded and available on-demand so members can learn at their convenience. To register or get more information, go to HIDA.org/events.

RESOURCES

HIDA

HIDA’s Research Offerings include

Reports at hida.org/research

Fall 2025 Must-Reads

A Selection Of Key Articles Addressing Changes Affecting The Healthcare Industry

Workforce Trends For Hospital CEOs To Follow | HealthLeaders

Healthcare workforce dynamics remain a moving target in 2025, creating both opportunities and challenges for hospital executives tasked with steering their organizations through shifting labor markets. Even as healthcare continues to be a dominant driver of U.S. job growth, cracks are showing in key areas such as nursing, C-suite turnover and nonclinical job cuts.

Over Half Of U.S. Healthcare Workers Plan To Switch Jobs | Reuters

More than half of U.S. healthcare workers are actively looking to leave their current jobs, according to a new survey. Top reasons cited for planning their exit were inadequate compensation and benefits (49%), or emotional fatigue (48%), and lack of career advancement, personal development, or education opportunities (48%). Forty percent said they would look outside their current employer.

Cost Pressures, AI, M&A Drive Growth In Healthcare Consulting | Modern Healthcare

Management consulting firms expect measurable growth in the healthcare sector, fueled by regulatory changes, economic constraints, ongoing workforce shortages and operational challenges, according to a Modern Healthcare survey. The top three operational concerns consultants found when assisting their healthcare clients involved workforce shortages, financial pressures and overcoming data system complexities.

Physician Stress Returns To Peak Pandemic Levels, Survey Shows | MedPage Today

Physicians' stress and anxiety have returned to pandemic levels, according to a national survey from The Physicians Foundation. Nearly six in ten physicians (57%) reported feelings of anger, tearfulness, or anxiety during the last year. This figure is up from about half of physicians in 2024 and 2023 but is similar to findings in 2022 and 2021.

Holiday Season Imports Have Arrived Early At Busiest U.S. Port | gCaptian

U.S. retailers are moving in holiday imports at least a month earlier than usual, aiming to mitigate the risks and costs associated with shifting tariff policies. The traditional seasonal surge in shipments ahead of Christmas has been pulled forward, with most year-end goods already moving through the supply chain.

AI Reshaping Corporate Structures, Workforce Roles | Wall Street Journal

Everyone, everywhere is restructuring. Businesses are starting with flatter teams that include fewer middle managers and reimagining workforces around skills and capabilities rather than mere head count. Meanwhile, the tech leadership at the top is overseeing a broader swath of responsibilities than ever before as they attempt to integrate artificial intelligence across all work functions.

Firms Add Tariff Clauses To Contracts Amid Trade Uncertainty | CFO Dive

About nine in 10 companies now include tariff-related clauses in some of their contracts as they scramble to mitigate the potential risks of global trade disruption, according to survey results released by contract management firm Agiloft. Companies are using tariff-specific language to hedge against uncertainty in areas such as pricing and delivery timelines.

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