Several health systems are bracing for anticipated tariffs proposed by the second Trump administration.
From increased costs of medical supplies to higher prices for goods like electronics and furniture, proposed high tariffs could lead to increased inefficiencies in the supply chain for ASCs, experts are warning.
Here is what two physicians told Becker's about anticipated cost increases:
Taif Mukhdomi, MD. Interventional Pain Physician at Pain Zero (Columbus, Ohio). As an organization, we review contracts and ordering on a semi-annual to annual basis. Fortunately for us, we have aligned with a few GPOs to stay competitive with pricings. At the end of the day, patient care needs to continue and we do not anticipate curbing any of our services. We certainly anticipate changes in inventory purchases and over the years we've found certain prices increase while others decrease — it really comes down to what items have become commoditized while which products are of high quality worth the higher premium.
Robert Tatsumi, MD. President of Oregon Spine Care (Tualatin): Microeconomics shows that before a tariff is in place, consumer consumption increases due to the lower cost of goods. Our corporation has been purchasing additional electronics and furniture (consumer surplus) in anticipation of future tariffs. Tariffs create inefficiencies in the market and lead to higher supply costs regardless of where the product is manufactured (deadweight loss). We anticipate reduced consumer spending to adjust for reduced business profits. Our supply chain pressure has remained neutral for the current fiscal year due to flexibility with sourcing various suppliers.