**Washington**: A survey shows that tariffs from the Trump administration are causing significant cost spikes and procurement disruptions in US healthcare. Executives report emergency budget recalibrations, with expected rises in medical equipment and pharmaceutical costs, raising concerns over patient care and insurance premiums.
A recent survey conducted by Black Book Research has revealed significant challenges facing the U.S. healthcare sector as a result of the expansion of tariffs initiated during the Trump administration. The findings indicate that rising costs, procurement disruptions, and financial pressures are influencing treatment delivery and operational strategies for healthcare providers, payers, and patients alike.
The survey, which took place between March 6 and April 2, involved responses from 200 senior healthcare executives across various roles, including hospital finance, medical equipment manufacturing, and health information technology. Doug Brown, Founder of Black Book Research, commented on the situation, stating, “The second wave of tariffs is no longer a theoretical threat — it’s a full-blown disruption with immediate consequences.”
The study highlights several key findings on how healthcare organisations are responding to these changes. A notable 83% of executives reported that they are in emergency budget recalibration mode, anticipating significant cost spikes in medical equipment and pharmaceuticals. Specifically, 88% of participants predicted at least an 18% rise in medical equipment costs by the end of 2025.
Additionally, nearly all respondents (94%) expect similar price increases of 33% or more for critical medical devices subjected to tariffs from China and the European Union. Even pharmaceutical costs are not exempt, with 97% predicting rises of at least 15% due to tariffs imposed on Indian active pharmaceutical ingredients (APIs).
Disruptions in supply chains have emerged quickly, with 21% of supply chain leaders reporting slowed procurement timelines for essential items such as surgical kits and diagnostic tools, leading to potential delays in patient care. Furthermore, 12% noted heightened volatility in renegotiating contracts with overseas suppliers, which has resulted in missed shipments and inventory shortages.
To mitigate these financial strains, hospitals are exploring various strategies. Around 75% of provider CFOs are shifting costs to payers and patients, while 29% are contemplating staff restructuring or wage freezes as measures to cope with the economic impact.
The ramifications are extending to payer organisations as well. A staggering 95% of payer executives foresee that inflation in claims costs will prompt double-digit premium increases for insurance plans in 2026. In light of the situation, 92% are examining their contracts to manage patient costs effectively.
While some providers are considering alternative sourcing strategies and evaluating domestic suppliers to offset international dependency, 94% caution that regulatory challenges and timelines could hinder any significant shifts in supply chains.
The healthcare industry is currently undergoing transformative changes in response to these economic pressures. As Brown noted, “This is a multi-front disruption — straining operations, freezing capital plans, destabilising sourcing, and threatening patient affordability all at once.” With many organisations pausing digital transformation projects, it remains to be seen how U.S. healthcare systems will adapt to these adversities without compromising the quality of care. Black Book Research plans to continue its examination of these developments through ongoing surveys and analytical updates.
Source: Noah Wire Services
Subscribe to Industry Updates
