I was visiting relatives in Kansas City a few weeks back and met a man wearing a tee-shirt bidding "Farewell to 2020." A popular sentiment, no doubt. Printed on his shirt was this review of the year . "2020 Very bad. Would not visit again" When asked what the one star represented, the gentlemen replied without hesitation, "The Chiefs winning the Super Bowl." Many football fans in Kansas and Missouri, including me, would certainly agree with his assessment. Just guessing here, but San Francisco fans must be wearing t-shirts with 0 out of 5 stars.
It seemed like a pretty good start to 2020 with 70-degree weather by early Feb 2, and our home team's first championship in 50 years. Then just 37 days later on March 11, the World Health Organization declared a worldwide pandemic drastically changing all of our lives. Who could have guessed 2020 would turn out to be the most enduring and challenging year most of us have ever experienced? The COVID-19 pandemic has certainly provided unprecedented challenges for everyone working in the health care field. As supply chain leaders, I would venture to guess even the most experienced have never worked so desperately for so long to keep shelves stocked with basic PPE supplies. In fact, Health Industries Distributor Associates President Matthew Roan estimated "At the height of the Pandemic, some hospitals were using 1700 percent more equipment than usual." No doubt, you have all sat long hours in front of your computer screens, searching your contacts for any resources you could find, while vetting grey market product for viability.
With 2020 now behind us and COVID-19 vaccines being administered, we can look back and see more clearly some of the unanticipated challenges and causes that have wreaked havoc to the established commercial supply chain for medical products. Roan suggests the supply chain itself remains strong, but it is only effective if there are supplies to move. He attributes three primary areas as the cause of these challenges "… as the pandemic began, factories in China, where much of the world's PPE is made, were shut down for close to three months, this has highlighted our reliance on manufacturers concentrated in one geography. The pandemic also brought on non-traditional customers for PPE such as state governments, charities, and businesses like grocery store chains and airlines that needed PPE. As the positive cases grew, all of these entities began to compete for what supplies were available, and new fly-by-night brokers entered the marketplace … to be clear the broker market is not part of the supply chain."
If you have any doubt about this, I recommend watching the 60 Minutes piece about Blue Flame Medical by Lesley Stahl that ran on Dec. 6, 2020. This, accompanied by your personal experience, should give us pause.
Though opinions vary about solutions to build a stronger system for the future, it seems evident in looking forward, there are some small but significant steps that can be taken to improve your hospital's opportunities of acquiring needed supplies. I would suggest, the strength of your regional supply chain resilience may very well rest in strong network and distribution partnerships. At the very least, this is one area we can directly impact. Hospital networks, when used effectively, can greatly enhance communication between member hospitals in identifying common needs and alternative solutions to shared concerns. They can also bring unified objectives to your common distribution partner to develop strategic solutions collaboratively.
Networks offer potential benefits in a variety of areas. With product availability based on a predetermined historical usage, and with Critical Access Hospitals lacking high volumes, a network's support of standardization efforts enhances volume on key products with a manufacturer. Hospital networks typically use a common distribution partner allowing for shared allocation where the network service and support teams can help facilitate the flow of hard-to-find products, directing it equitably to the heaviest area of need within the region. Another benefit provided by a strong network and distribution partnership can be the acquisition of bulk product. As has become evident during this pandemic, many manufactures are requiring PPE to be purchased in large volumes or with cash already on hand as noted by Dr. M. Ranney, emergency room physician and professor at Brown University. Strong network/distributor partnerships can help facilitate this type of purchase, breaking down the product to lower units of measure; thereby, reducing the financial commitment for the individual hospitals.
We have learned more about the weaknesses and strengths in the medical supply chain world than we have in recent years. One thing is for certain: You, as supply chain leaders, are a foundational asset to your community hospital and key to a successful partnership. Whether it is a resurgence of this pandemic or helping to build a stronger regional supply chain for the future, your resilience, dedication and teamwork are greatly appreciated!! I believe I can confidently speak for everyone when I say THANK YOU!