Top issues facing supply chain leaders

Here are some of the most pressing issues supply chain leaders have faced in the past year: 

Tariffs and cost increases

Supply leaders across the country are facing pressures as newly implemented tariffs reshape the global supply chain. In April, the U.S. imposed a sweeping tariff policy that enacted a 10% baseline tariff on all imports, with much steeper rates for other key trading partners. Most recently, President Donald Trump imposed a 50% tariff on most imports from India, doubling the previous 25% rate, CBS News reported Aug. 27. 

In addition, a 15% tariff on imports from the European Union took effect Aug. 7, which applied to a wide range of medical devices and diagnostic equipment. 

After the initial tariffs took effect, health systems responded with urgency. Renton, Wash.-based Providence Health created a tariff projection model to help assess the health system’s financial impact. The system focused on high-cost, high-risk items like cardiac catheters and pulse oximeters, projecting the tariffs would increase systemwide costs by $10 million to $25 million. 

At Rochester, Minn.-based Mayo Clinic, Bruce Mairose, division chair for sourcing and networks, told Becker’s a dedicated task force was enacted to help assess and respond to ongoing shifts. To be proactive, the team analyzes country of origin data by SKU, verifies that supplier-imposed price increases reflect tariff exposure compared to margin padding, and shifts contracting to lower-tariff alternatives. 

Rising care costs driven by inflation and disruptions 

In addition to tariffs, another financial pressure supply leaders are being confronted with is inflation and persistent supply disruptions compounding the cost of care. 

According to a Premier survey of 100 healthcare and supply leaders in spring 2024, 80% of leaders reported that they anticipated supply chain challenges to stay the same or worsen in 2025, with 39% reporting canceling or rescheduling procedures at least quarterly because of product shortages. The instability costs midsize health systems around $3.5 million annually on average. 

According to the survey, shortages are hitting essential clinical areas, especially for surgical and anesthesia supplies (74%), emergency care items (64%) and pain management medications (52%). 

One of the most notable shortages in the past year was the IV fluid shortage triggered by Hurricane Helene in late 2024. The hurricane damaged Baxter International’s North Cove, N.C., facility, which is responsible for 60% of the nation’s IV fluid supply. 

During the peak of the disruption, hospitals and health systems were forced to ration supplies. A Premier survey found that 88% to 86% of providers received less than half of their IV fluid orders, with many receiving less than half, spurring some systems to delay or cancel elective surgeries during this time. 

Starting late 2024, Baxter began ramping up production on its North Cove lines, and by the end of December, 85% of production capacity had returned. As of August 2025, the IV shortage has officially resolved, with sodium chloride 0.9% injections removed from the FDA shortage list. 

In response to the shortage, hospitals accelerated efforts to rationalize SKU portfolios, eliminating unnecessary variation. Many also turned to technologies, like AI and blockchain to better track product availability and forecast demand. 

Building strategic resilience amid fragility 

In the wake of the IV fluid shortage and the COVID-19 pandemic, supply leaders have been transforming lessons learned into long-term strategies for supply chain resilience. 

At UChicago Medicine, Eric Tritch, vice president of supply and support services, said the health system’s supply leaders have shifted the narrative. Rather than simply managing disruptions as they happen, leaders are  bearing in mind the potential return on investment of adopting proactive strategies. 

Cincinatti-based UC Health has taken a similar approach by allocating internal resources to manage backorders and substitutions full time, which has allowed it to remain agile while increasing visibility across its supplier network. 

Altamonte, Fla.-based AdventHealth is also investing in infrastructure to scale resilience measures, recently opening a 375,000 square-foot centralized service center designed for the dual purpose of centralizing distribution and  integrating AI to manage inventory. 

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