COVID-19
Rallying around the caregivers Distributors are working tirelessly to ensure product gets to providers.
of product across a wider group of essential purchasers. This is accomplished by placing temporary limits on the quantities any particular purchasing entity can purchase at any given time. It is commonly based on historical demand. Looking back over a defined period of time, distributors would then make that amount of product available to customers. There were several reasons for this. “One is to make sure that it’s a signal so customers understand there’s a potential supply issue, that the historical amount of supply that’s been available may not be available in the future,” Eliasek said. “It’s a signal to our customers to conserve and to make sure that when they’re using these products that they need to be using The warning bells began to go off in January. Back in January when COVID-19 started to build, there was an impact to the production of personal protective equip-
them effectively.” Allocation is also a way for distribu-
ment (masks, gowns, face shields, gloves products), because a high percentage of those
tors to maintain the supply chain and
products are made in China. McKesson anticipated the product disruptions that would
have product available for customers
happen as a result of the situation in China and began to plan accordingly.
when they need it. “A lot of our customers don’t have a lot of space within their facilities,” said Eliasek. “Their facilities
“It’s a relatively long supply chain and
to how McKesson and other large
are dedicated to caring for patients, and
it takes some time for those products
national distributors are working with
so they might have a small supply closet
to be made and then get to the United
the government to get products into the
or they might keep products in a cabinet
States,” said Joan Eliasek, senior vice
hands of providers.
somewhere. They don’t have space to put
president of Customer Experience for
weeks’ worth of product. They rely on
McKesson. “So we knew then that there
them in our distribution centers. And so
Healthcare Contracting, Eliasek discussed
Once it was determined that product
product won’t be available, we use this
McKesson’s efforts to support caregivers
supply would be disrupted due to condi-
allocation methodology, which is not per-
and communities during the pandemic.
tions in China, distributors were forced to
fect but does help us maintain products
Topics ranged from allocation of med-
employ allocation strategies. Allocation is
so that our customers will have it as they
surg products and why that’s happening
a methodology to spread a limited supply
continue to use it.”
In a podcast hosted by The Journal of
34
us to maintain those products and keep
Maintaining supply amid a pandemic
would potentially be a shortage of supply.”
when we see that there’s a possibility that
June 2020 | The Journal of Healthcare Contracting
