**London**: A recent survey reveals that new tariffs on imports from Mexico, Canada, and China may lead to significant healthcare cost increases, supply chain disruptions, and affordability challenges for patients, prompting healthcare professionals to explore alternative suppliers and brace for financial repercussions.
Concerns are mounting among healthcare supply chain professionals regarding the impact of new tariffs imposed on imports from Mexico, Canada, and China, according to a recent survey conducted by Black Book Research. The tariffs, which include a 25% tax on goods from Mexico and Canada and a 10% tax on those from China, threaten to escalate healthcare costs, disrupt supply chains, and create affordability challenges for patients.
The survey, which gathered insights from 160 industry stakeholders—spanning roles from hospital finance executives to pharmaceutical manufacturers—revealed that many expect significant price increases in medical equipment and pharmaceuticals. Specifically, 164 out of 200 respondents predicted that hospital costs would rise by at least 15% over the next six months due to higher import expenses. Additionally, 69% estimated that pharmaceutical prices would increase by at least 10% as a result of tariffs on active pharmaceutical ingredients from China.
The projected impact on supply chain operations is equally troubling. A notable 90% of healthcare supply chain professionals foresee disruptions in procurement processes and contract negotiations, with 81% of medical equipment manufacturers expecting longer lead times and shortages stemming from rising production costs and import restrictions.
As hospitals confront these escalating costs, they are likely to transfer some burden onto insurers and patients. Indeed, 90% of surveyed hospital finance executives indicated they might elevate service charges to manage increased expenses. Furthermore, 94% of healthcare administrators anticipate they will need to reduce procurement volumes or delay equipment upgrades to alleviate financial pressures.
Payers are also bracing for fallout from the tariffs; 84% expect higher claims costs due to increased pricing on medical treatments and drugs. Almost half of the payer executives surveyed believe insurance premiums will rise within the next year as a direct result of added supply chain costs.
As these changes loom, 27% of respondents are actively searching for alternative domestic or international suppliers to lessen reliance on imports from affected countries. However, a staggering 92% of pharmaceutical manufacturers cautioned that switching suppliers may provoke regulatory delays and inconsistent availability, especially for critical medications.
The impact extends into the realm of healthcare IT, with 39% of IT executives anticipating increased costs for software licensing and related services due to pricier imported technology components. Furthermore, 91% of provider IT leaders expect delays in digital transformation initiatives as funds are redirected to cover rising operational expenses.
Doug Brown, founder of Black Book, highlighted the broader implications, stating, “Healthcare providers, payers, and patients will all experience the financial ramifications of these tariffs. As medical supply costs escalate, hospitals and insurers will be forced to make difficult financial decisions, inevitably passing increased expenses down to patients through higher out-of-pocket costs.”
With the healthcare sector preparing for the full impact of these tariffs, Black Book Research is keen to continue monitoring emerging supply chain trends and adaptive strategies aimed at mitigating risks while sustaining affordability for patients.
Source: Noah Wire Services
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