PRIME DISTRIBUTOR
PROVIDED BY THE HEALTH INDUSTRY DISTRIBUTORS ASSOCIATION
Pandemic sourcing checklist Ten questions to screen potential healthcare supply sources … and avoid fraudulent brokers
Since COVID-19 invaded the United States, the healthcare supply chain has
proof of the current location of
faced a dramatic increase in demand for medical supplies.
the inventory? 4. Can you offer references? 5. Can you provide a sample?
This situation is ripe for abuse by
6. Can you provide a copy of your
fraudulent brokers – individuals or busi-
quality manual?
nesses armed with little knowledge of the
7. Can you provide the company’s
healthcare industry and its stringent quality
W-9 and/or business license?
requirements – who dive into what they see
8. Can you provide a financial
as an opportunity-rich market. The goal of
snapshot, including a recent
these brokers is to facilitate deals between
income statement?
sellers and buyers in the unofficial “gray
9. Can you provide proof of
market.” Brokers do not take ownership of
510(k) clearance?
products. Industry acceptable transportation
10. Can you provide product cut
controls are not guaranteed, increasing
sheets?
the risk for lost or damaged shipments. Brokers are focused on individual transac-
A request for advance payment
tions, not long-term business relationships
should raise a bright red flag. There
with either the buyer or the seller. A bro-
Agency’s (FEMA) recent efforts to screen
have been multiple reports in which the
kered transaction is ripe for price-gouging,
1,000 new supply offers resulted in only a
broker vanishes after receiving the funds
especially in times of high demand.
handful of viable purchases.
they say are needed for the purchase.
The media has reported multiple
So how can you understand the differ-
accounts where during the COVID-19
ence between a fraudulent broker and a
the physical items before paying for the
pandemic, brokers have profiteered from
professional, qualified distributor?
shipment. It also will allow you to verify
delivering high-priced, substandard or
the quality of the supplies.
counterfeit medical supplies, or simply
The 10 questions below can help buyers
disappeared with the money without mak-
spot warning signs before any payment is
ated by COVID-19, distributors have
ing a delivery at all.
made. Reliable distributors will be able to
been working diligently to identify new
provide rapid and verifiable responses to
PPE sources. Their goal is, as it always
vetting questions, brokers will not.
has been, to provide quality medi-
In contrast, established healthcare distributors typically serve as a single trusted source through which providers buy a
1. Are you able to demonstrate
To meet the increased demand cre-
cal supplies quickly and efficiently to
full range of medical products critical
proof of product registration
healthcare providers on the frontlines
to everyday operations. They are known
with the Food and Drug
of this pandemic.
to the nation’s hospitals, nursing homes,
Administration (FDA)?
physician practices, home health organizations, and other healthcare providers. Vetting a supplier is not a simple process. Even the Federal Emergency Management
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Do not be shy about requiring access to
More information on sourcing offers
2. How long have you or your source manufactured medical supplies? 3. Can you provide current
for PPE from unknown sources can be found by visiting the Health Industry Distributors Association’s COVID-19 Resource
inventory levels and photographic
Center, HIDA.org/coronavirus.
June 2020 | The Journal of Healthcare Contracting
