Tariffs push healthcare industry into ‘unchartered waters’

Hospitals are facing renewed pressure on supply chains as new U.S. tariffs threaten to disrupt access to critical medical supplies. Following Hurricane Helene’s earlier exposure of healthcare’s supply chain vulnerabilities, President Trump’s sweeping tariff policy—including a 10% baseline import tax and targeted levies—raises alarm across the industry. Healthcare groups warn that the tariffs will raise costs for essential equipment like syringes, diagnostic tests, and protective gear, with few viable alternatives for manufacturing relocation. The American Hospital Association and medical device trade groups have pushed for exemptions, arguing that supply chains cannot be quickly reshored and that tariffs risk worsening existing shortages. Hospitals, already locked into payer contracts, may see profits fall without new revenue or cost-saving strategies. Providers like Providence estimate the tariffs could cost them up to $25 million annually. Combined with potential Medicaid cuts, leaders warn these pressures could jeopardize care delivery and threaten national healthcare stability.

07-04-2025

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