Medical, Lab & IT Equipment Benchmarking & Analytics

Medical, Lab & IT Equipment Benchmarking & Analytics

April 21, 2022

Market Alerts

Hospital Strategies to Navigate Supply Chain Disruption

Recent updates to China’s “Zero-COVID Strategy” and lockdowns that began in March will be extended for the foreseeable future. With the continued uptick in COVID-19 cases, 87 of the 100 largest cities in China are now under some level of restriction or lockdown. Experts are predicting the already challenging global supply chain conditions will worsen in coming weeks and months.

As the largest importer of goods from China, the US is expected to see further disruption to the flow of critical goods – including medical equipment and supplies. Hospitals should consider the following strategies to help with the unpredictable product shortages expected to persist through 2022, and possibly longer.

  1. Assess Exposure to Products Produced in China –While this is often not an important consideration for hospitals, in light of the recent lockdowns in China, it will help to understand the degree of reliance upon mission-critical products produced in China, even if you are purchasing from a US based supplier or distributor. This will help you anticipate and plan ahead to mitigate risk and the potential impact on hospital operations.
  2. Identify Acceptable Substitutes – Hospitals have become accustomed to having to accept substitute products over the past several years. Engaging your providers in establishing as many possible “acceptable” product alternatives as possible can help. Today, however, there is an even greater strategic benefit to sourcing products manufactured outside of China, including here in the US. The premium it can cost to secure these products may far outweigh the price and consequence of not having what is needed to deliver patient care.
  3. Act Quickly, Stockpile Hard-to-Find Products – As the impact from the current COVID conditions in China ripples through global markets, hospitals should hedge against further unplanned shortages by working to buy up available products and increasing their on-hand inventory even if it is at a premium price. With supply for many products already constrained, prices that are inflated above pre-pandemic levels are expected to increase even more.

Utilizing the purchasing strategies outlined above may help prepare your hospital for ongoing uncertainty about when, and if critical products will be available. Plan ahead and keep in mind that whenever lockdown restrictions in China are relaxed, the resulting surge of pent-up product shipments is predicted to clog the supply chain even further before conditions improve. 

Miga will continue to monitor market conditions and share any relevant information and updates as they become available.

Know the right price.

And get it.

Having the right information saves hospitals time and money on medical equipment lifecycle costs.

Scott Bosch

Manager of Clinical Engineering

Park Nicollet Health Services

“The groups responsible for managing technology in our healthcare organization need data and analysis to manage costs and make informed decisions. Miga’s EVMS platform is an important and valuable resource that helps us make the right decisions for both our clinical priorities and budget.”

Matt Werder

Chief Technology Officer

Hennepin County Medical Center

“Miga’s data is key to helping us be good financial stewards and validates we are using our resources wisely. The market intelligence provided by Miga’s EVMS platform has allowed us to save substantial amounts of money.”

"Miga’s ability to match equipment donated by their customers with the needs of our medical projects has been a most valuable and welcomed resource."

Jim Tierney

CEO

Suburban Radiology

“Miga’s data, analysis and expertise – in particular related to the fair market value of clinical equipment – is a critical resource we need to support strategic acquisitions, divestitures and joint ventures.”

Eric Hoag

Director, Corporate Strategy & Development

Allina Hospitals and Clinics

“Miga’s proprietary data and expertise was critical to our ability to close an acquisition deal quickly and with a high level of confidence in our valuation.”

Bill Barta

Corporate Director, System Imaging

Fairview Health Systems

“Miga’s objective information-based approach and understanding of the needs of hospitals makes them a valuable resource and helps us make the most cost effective spending decisions.”

Matt Blashill

Enterprise Director of Supply Chain

Lake Region Healthcare

"There’s a personal touch that sets Miga apart from their competitors. They don’t just offer great insights. They always take the time to provide additional analysis that is meaningful and actionable."

Dan Bazinet

Director of Clinical Engineering

Southcoast Health

“In all my years in health care, I’ve used a lot of benchmarking tools. Most simply repeat information passed along from others; Miga’s information tells me what’s really happening.”

COO

Community Hospital

"Miga's negotiating skills save us time and money. And their unique understanding of the market means we’re always playing from a position of strength."

Supply Chain Director

Regional Healthcare System

“All suppliers claim to have excellent customer service. Miga actually walks the talk and always has our best interest at heart. We love working with them."