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Premier President: GPO Remains Vigilant, but No Current Supply Disruptions Due to Coronavirus

Published in: The Journal of Healthcare Contracting

While we have ways to monitor, prepare for and respond to situations like this, our industry has a global supply chain. And we know that an overreliance on one country or one region puts the entire healthcare supply chain in jeopardy. It can place unsustainable economic strain on the marketplace and exponentially increase the likelihood for product disruptions, including items that healthcare providers use daily – APIs/pharmaceuticals, personal protective apparel and more.

Our members are not currently experiencing disruptions in supplies as a result of the coronavirus, but Premier is actively monitoring and preparing for issues that may arise. We are staying in constant communication with our suppliers and members, as we know that the slightest hint of a potential disruption engenders proactive hoarding of product, which exacerbates the burden on suppliers. Obviously this is an evolving situation, and we recognize that if seaports and other transportation close, this could become an issue. Premier’s strategic and careful sourcing strategy, which relies on creating as much supply chain and sourcing diversity as possible, has helped ensure that our suppliers have ample inventory to meet our members’ immediate and near-term future needs.

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