Health systems are bracing for increased supply challenges and higher costs heading into 2025 amid a new presidential administration.
As systems — especially small, independent ASCs — have struggled to come back from supply shortages brought on by the COVID-19 pandemic, they will now likely be hit with new challenges in the coming months, including tariffs and potential port strikes.
President-elect Donald Trump plans to levy new tariffs against several key countries, likely increasing prices for American businesses.
Systems have struggled to contend with these challenges in different ways, and will likely continue to do so.
Anthony Tortolani, MD, a cardiac and thoracic surgeon and professor of clinical cardiothoracic surgery at Weill Cornell Medical College in New York City, told Becker's that tariffs stand to further increase pressures on independent health systems in the new year.
Dr. Tortolani: The institutional responses to supply chain issues were varied, and the successful ones cannot be universally applied to all hospitals. The anticipated higher tariffs are predicted to limit supply chain effectiveness and increase cost. For integrated hospital systems, increasing volume, efficiency, internal cooperation and their ability to leverage in negotiating prices provide for a foundational strategy. For standalone hospitals where patient population may be primarily Medicaid and the non-insured, increasing volume and increasing costs may not be adequately countered by increased efficiency. At present in these hospitals, survival is contingent on voluntary government funding supplements for continued viability. Tariffs would thus make the care situation at independent hospitals and ASCs even more precarious.