HIDA UPDATE

HIDA LEGISLATIVE UPDATE A 90-day supply for a 350-bed hospital requires 5,700 sq. ft. of space — the equivalent of 13–15 tractor trailers. A 90-day supply for a 5,000-bed system requires 81,400 sq. ft. of space — the equivalent of 90-Day PPE Stockpile Manda 1½ fo tes otball Moving Towards Supply Chain Elasticity Increase Shortages And Drive Up Costs Policymakers are considering mandates for healthcare providers to maintain 90-day stockpiles of critical supplies such as personal protective equipment (PPE). These mandates are likely to increase supply shortages and drive up costs to hospitals. A better solution is to stockpile government controlled HIDA proposes a better alternative to mandated long-term stockpiles. pandemic supplies at the country’s 500+ existing distributor warehouses across the U.S., positioning inventory close to healthcare providers for immediate surge needs during a crisis. By Linda Rouse O’Neill, HIDA VP of Government Affairs Supplies Needed On The Front Lines

Get Moved To The Back Shelf...Large Stockpiles Create New Logistical …And Challenges Drive Up Costs

Proposals requiring healthcare providers to maintain a 90-day stockpile of personal protective equipment (PPE) and other critical supplies appear to be a simple way to avoid future equipment shortages. In reality, requiring every hospital and nursing home to maintain a sizable stockpile in the middle of a global pandemic will exacerbate ongoing PPE shortages. Stockpiles of this size divert supplies from the front lines to the back shelf of a warehouse.

HIDA and fellow trade association AdvaMed wrote to New York’s Health Department and Governor’s Office to share concerns about the state’s 90-day mandate. Together, we urged the state to utilize the private sector’s innovation and experience with manufacturing, storage, warehousing and technology to help ensure New York’s public health goals.

“Leveraging experienced supply chain experts will avoid the risk of product expiration, theft, damage, and waste,” we wrote in the letter. “Further, we are concerned that hospitals in New York will not be able to meet the logistical challenge of this stockpiling requirement. A 90-day supply for a 350-bed hospital requires 5,700 square feet of space, which is the equivalent of approximately 15 tractor trailers.”

Efforts to create larger equipment reserves are one reason why demand continues to outstrip supply. Imposing a 90-day stockpile mandate on every hospital would create even greater shortages. Stockpiling incurs additional costs and complications happening when

A 90-d July 8, 2020ay supply for a 350-bed hospital requires 5,700 sq. ft. of A 90 A 90-d day supply of PPE ay supply for a 5,000-bed space — the equivalent of 13–15 tractor trailers. for a 350-bed hospital system requires 81,400 sq. ft. of Grave Shortages of Protective would cost as much as space — the equivalent of 90-Day PPE Stockpile Mandates Increase Shortages And Drive Up Costs Policymakers are considering mandates for healthcare providers to maintain 90-day stockpiles of critical supplies such as personal protective equipment (PPE). These mandates are likely to increase supply shortages and drive up costs to hospitals. A better solution is to stockpile government controlled pandemic supplies at the country’s 500+ existing distributor warehouses across the U.S., positioning inventory close to healthcare providers for immediate surge needs during a crisis. Large Stockpiles Create New Logistical Challenges A 90-day supply for a 350-bed hospital requires 5,700 sq. ft. of space — the equivalent of 13–15 tractor trailers. A 90-day supply for a 5,000-bed system requires 81,400 sq. ft. of space — the equivalent of 1½ football 90-Day PPE Stockpile Mandates Increase Shortages And Drive Up Costs Policymakers are considering mandates for healthcare providers to maintain 90-day stockpiles of critical supplies such as personal protective equipment (PPE). These mandates are likely to increase supply shortages and drive up costs to hospitals. A better solution is to stockpile government controlled pandemic supplies at the country’s 500+ existing distributor warehouses across the U.S., positioning inventory close to healthcare providers for immediate surge needs during a crisis. 90-Day PPE Stockpile Mandates Increase Shortages And Drive Up Costs Policymakers are considering mandates for healthcare providers to maintain 90-day stockpiles of critical supplies such as personal protective equipment (PPE). These mandates are likely to increase supply shortages and drive up costs to hospitals. A better solution is to stockpile government controlled pandemic supplies at the country’s 500+ existing distributor warehouses across the U.S., positioning inventory close to healthcare providers for immediate surge needs during a crisis. 90-Day PPE Stockpile Mandates Increase Shortages And Drive Up Costs Policymakers are considering mandates for healthcare providers to maintain 90-day stockpiles of critical supplies such as personal protective equipment (PPE). These mandates are likely to increase supply shortages and drive up costs to hospitals. A better solution is to stockpile government controlled pandemic supplies at the country’s 500+ existing distributor warehouses across the U.S., positioning inventory close to healthcare providers for immediate surge needs during a crisis. Large Stockpiles Create New Logistical Challenges 90-Day PPE Stockpile Mandates Increase Shortages And Drive Up Costs Policymakers are considering mandates for healthcare providers to maintain 90-day stockpiles of critical supplies such as personal protective equipment (PPE). These mandates are likely to increase supply shortages and drive up costs to hospitals. A better solution is to stockpile government controlled pandemic supplies at the country’s 500+ existing distributor warehouses across the U.S., positioning inventory close to healthcare providers for immediate surge needs during a crisis. Large Stockpiles Create New Logistical Challenges A 90-day supply for a 350-bed hospital requires 5,700 sq. ft. of space — the equivalent of 13–15 tractor trailers. A 90-day supply for a 5,000-bed system requires 81,400 sq. ft. of space — the equivalent of May 6, 2020 Gear Flare Again as Covid Cases Surge “…demand continues to outstrip supply because hospitals, states and the federal government are trying to stockpile supplies.” Stockpiles need to be managed and the increased inventory rotated to avoid the risk of product expiration, theft, damage, and waste. $2 million. © Health Industry Distributors Association July 8, 2020 Grave Shortages of Protective Gear Flare Again as Covid Supplies Needed On The Front Lines Get Moved To The Back Shelf... …And Drive Up Costs 1½ football A 90-day supply of PPE for a 350-bed hospital would cost as much as $2 million. 90-Day PPE Stockpile Mandates Increase Shortages And Drive Up Costs Policymakers are considering mandates for healthcare providers to maintain 90-day stockpiles of critical supplies such as personal protective equipment (PPE). These mandates are likely to increase supply shortages and drive up costs to hospitals. A better solution is to stockpile government controlled pandemic supplies at the country’s 500+ existing distributor warehouses across the U.S., positioning inventory close to healthcare providers for immediate surge needs during a crisis. Large Stockpiles Create New Logistical Challenges A 90-day supply for a 350-bed hospital requires 5,700 sq. ft. of A 90-day supply for a 5,000-bed Large Stockpiles Create New Logistical Challenges A 90-day supply for a 350-bed hospital requires 5,700 sq. ft. of space — the equivalent of 13–15 tractor trailers. A 90-day supply for a 5,000-bed system requires 81,400 sq. ft. of space — the equivalent of 1½ football Large Stockpiles Create New Logistical Challenges A 90-day supply for a 350-bed hospital requires 5,700 sq. ft. of space — the equivalent of 13–15 tractor trailers. A 90-day supply for a 5,000-bed system requires 81,400 sq. ft. of space — the equivalent of 1½ football A 90-day supply for a 350-bed hospital requires 5,700 sq. ft. of space — the equivalent of 13–15 tractor trailers. A 90-day supply for a 5,000-bed system requires 81,400 sq. ft. of space — the equivalent of 1½ football 1½ football May 6, 2020 Cases Surge “…demand continues to outstrip supply because hospitals, states and the federal government are trying to stockpile supplies.” space — the equivalent of 13–15 tractor trailers. system requires 81,400 sq. ft. of space — the equivalent of 1½ football

Supplies Needed On The Front Lines

July 8, 2020 Get Moved To The Back Shelf... Supplies Needed On The Front Lines July 8, 2020 Supplies Needed On The Front Lines Get Moved To The Back Shelf... Stockpiles need to be managed and the increa to avoid the risk of product expiration, theft,Supplies Needed On The Front Lines Get Moved To The Back Shelf... …And Drive Up Costs A 90-day supply of PPE for a 350-bed hospital …And Drive Up Costs A 90-day supply of PPE sed inventory rotated damage, and waste. …And Drive Up Costs May 6, 2020 Grave Shortages of Protective Gear Flare Again as Covid Cases Surge “…demand continues to outstrip supply because hospitals, states and the federal government are trying to stockpile supplies.” July 8, 2020 Grave Shortages of Protective Gear Flare Again as Covid Cases Surge Supplies Needed On The Front Lines Get Moved To The Back Shelf... July 8, 2020 Grave Shortages of Protective Gear Flare Again as Covid Cases Surge Supplies Needed On The Front Lines Get Moved To The Back Shelf... July 8, 2020 May 6, 2020 Grave Shortages of Protective Gear Flare Again as Covid Cases Surge Get Moved To The Back Shelf... May 6, 2020 Grave Shortages of Protective Gear Flare Again as Covid Cases Surge “…demand continues to outstrip supply because hospitals, states and the federal government are trying to stockpile supplies.” July 8, 2020 May 6, 2020 Grave Shortages of Protective Gear Flare Again as Covid Cases Surge “…demand continues to outstrip supply because would cost as much as $2 million. …And Drive Up Costs A 90-day supply of PPE for a 350-bed hospital would cost as much as $2 million. …And Drive Up Costs A 90-day supply of PPE for a 350-bed hospital would cost as much as $2 million. …And Drive Up Costs A 90-day supply of PPE for a 350-bed hospital would cost as much as $2 million. for a 350-bed hospital would cost as much as $2 million. © Health Industry Distributors Association A 90-day supply of PPE for a 350-bed hospital would cost as much as $2 million. Stockpiles need to be managed and the increa to avoid the risk of product expiration, theft, May 6, 2020 “…demand continues to outstrip supply because May 6, 2020 “…demand continues to outstrip supply because hospitals, states and the federal government are “…demand continues to outstrip supply because hospitals, states and the federal government are trying to stockpile supplies.” Stockpiles need to be managed and the increa hospitals, states and the federal government are trying to stockpile supplies.” sed inventory damage, andsed inventory rotate waste.rotate d d hospitals, states and the federal government are trying to stockpile supplies.” to avoid the risk of product expiration, theft, damage, and waste. trying to stockpile supplies.” Stockpiles need to be managed and the increased © Health Industry Distribuinventory rotated tors Association Stockpiles need to bto avoid the risk ofe manaproducged at expind the increaration, theft, sed inventory rotated © Health Industry Distribudamage, and waste. tors Association Stockpiles need to bto avoid the risk ofe manaproducged at expind the increaration, theft, sed inventorydamage, and rotatewaste.d Stockpiles need toto avoid the ri be managedsk of product and the increased inventory rotated expiration, theft, damage, and waste. © Health Industry Distributors Association to avoid the risk of product expiration, theft, damage, and waste.© Health Industry Distributors Association

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