Amidst tariff uncertainties, ECRI has published a list of guidelines for healthcare supply chain leaders to navigate tariff effects.
ECRI’s suggestions are as follows:
- Find alternatives. According to ECRI, “When tariffs increase the price of certain medical products, healthcare providers should explore functional equivalent clinically acceptable alternatives that meet the same performance and safety standards.”
- Purchase from multiple suppliers. Depending on “a single supplier can leave healthcare providers vulnerable to disruptions caused by tariffs.”
- Have a surveillance system in place. This can reduce disturbances, according to ECRI. Additionally, “it’s crucial not only to receive hazard and alert notifications promptly, but also to ensure they reach the right people quickly.”
- Thoroughly investigate new suppliers “and review contracts to ensure compliance with quality standards and regulatory requirements.”
- Stay ahead of delays/shortages. ECRI suggests considering “adopting automated inventory management solutions that offer predictive analytics to monitor stock levels and reduce waste.”
- Long-term contracts “with trusted suppliers can help stabilize pricing and reduce the impact of future tariff increases. Establishing multi-year agreements with volume-based pricing can lock in rates and provide cost certainty over time.”
- Try to minimize tariff effects by looking at “domestic sourcing options for critical medical devices and supplies.”
- Stay up to date on current policies and “engage in advocacy efforts.”
- Analyze challenges “using the Harmonized Tariff Schedule (HTS).
- Plan ahead by using “predictive replacement planning to optimize capital spending.
