Hospitals faced tariff risk, rising supply costs in 2025

Tariff uncertainty, inflation, and persistent import dependencies shaped hospital supply chain decisions throughout 2025, according to the American Hospital Association’s 2026 Environmental Scan.

Supply and drug expenses accounted for more than one-fifth of total hospital spending last year — with supplies representing 13% and drugs 9%. At the same time, inflation continued to outpace Medicare inpatient reimbursement, reducing hospitals’ ability to absorb cost increases.

A majority of healthcare leaders reported concern about tariff-driven cost spikes and sourcing challenges. Eighty-two percent expected tariffs to raise hospital supply costs by at least 15%, and 90% of supply chain professionals anticipated procurement disruptions. In response, 94% of hospital administrators said they planned to delay equipment upgrades due to financial strain.

Hospitals continued to rely heavily on imported goods. In 2024 alone, the U.S. imported more than $75 billion in medical devices and supplies, with many hospitals dependent on offshore manufacturing for critical items such as respirators, gloves and IV bags.

The report highlighted that hospitals’ exposure to global trade volatility remains high — highlighting continued risk around pricing, availability and supply continuity heading into 2026.

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