Lawmakers tackle shortages of drugs and medical supplies | Bills & Laws

The skinny

Lawmakers have introduced a bill that’s aimed to help improve the flow of medical supplies to hospitals and health systems.

A bipartisan group of senators are backing a bill to improve the medical supply chain. From left, U.S. Sens. Thom Tillis (R-N.C.), Chris Coons (D-Del.), John Cornyn (R-Texas), and Michael Bennet (D-Colo.).

Sponsors

Republicans and Democrats are backing this effort. U.S. Sens. Thom Tillis (R-N.C.), Chris Coons (D-Del.), John Cornyn (R-Texas), and Michael Bennet (D-Colo.) are the lead sponsors of a bill in the Senate. U.S. Reps. Brad Schneider (D-Ill.) and Nicole Malliotakis (R-N.Y.) are sponsoring a similar bill in the House.

Summary

Lawmakers say the measure is designed to reduce the healthcare supply chain interruptions that have become all too common for hospitals in recent years. The measure is dubbed The Medical Supply Chain Resiliency Act.

• Read more: Reversing Medicare cuts to doctors

Analysis

Hospitals and health systems have seen shortages of key supplies repeatedly since the emergence of the COVID-19 pandemic. Even in recent years, they’ve had problems when a critical supplier faces disruptions.

Hospitals grappled with shortages of bottles for blood cultures last year. In 2022, health systems faced a shortage of contrast dye used in medical imaging after a GE Healthcare plant based in Shanghai was shut down for weeks due to a spike in COVID-19 cases. Health systems have regularly encountered shortages of critical medication, including cancer drugs.

To bolster the medical supply chain, lawmakers say their bill would give America more options to negotiate trade deals with other countries to obtain essential products and materials.

Tillis said the bill offers “a critical step toward ensuring that America’s healthcare providers have reliable access to the essential supplies they need.

“By strengthening trade partnerships with our allies and expanding domestic manufacturing, we can enhance our nation’s preparedness for future health challenges. I’m proud to support this bipartisan effort to reinforce our medical supply chains and protect public health,” Tillis said in a statement.

Coons said the bill could help reduce interruptions in medical supplies. As he noted, “Life-threatening shortages of testing kits, drugs, and masks during the COVID-19 pandemic showed us just how fragile our medical supply chains are.

“Working with our most trusted trading partners to make our supply chains more resilient will strengthen our response to future public health emergencies while ensuring health care providers have access to essential medical products and patients have access to life-saving care,” Coons said in a statement.

Supporters

Some key groups have come out in support of the legislation.

Soumi Saha, senior vice president of government affairs at Premier, Inc., said the legislation could help improve the supply chain for hospitals.

She noted that many healthcare products are dependent upon a single supplier, so if there’s a problem at a plant, health systems see shortages. Hospitals saw shortages of IV supplies when a North Carolina plant was shut down due to heavy flooding from Hurricane Helene.

“Building a stronger, more sustainable, and secure supply chain demands a balanced approach – expanding domestic manufacturing while fostering strategic trade partnerships,” Saha said in a statement. “The Medical Supply Chain Resiliency Act is a critical step toward this goal by enabling the designation of trusted trade partners to diversify sourcing for medical devices and pharmaceuticals.”

The U.S. Chamber of Commerce has also spoken out in support of the bill.

“Enhancing the resilience of medical supply chains is important to both our public health and our national security,” John Murphy, the chamber’s senior vice president for international policy, said in a statement.

The National Foreign Trade Council and PhRMA have also endorsed the legislation.