Medical, Lab & IT Equipment Benchmarking & Analytics

Medical, Lab & IT Equipment Benchmarking & Analytics

March 09, 2022

Market Alerts

MARKET ALERT: Hospital Supply Chain & War in Ukraine

The current war in Ukraine has captured the attention of the world. It is already having a material global impact and devastating communities in Ukraine. We feel for those being impacted, especially after 2 very long years of the pandemic. For US hospitals, these conditions will greatly increase uncertainty around availability of certain products – both equipment and supplies – particularly those produced or assembled in Eastern Europe.

Manufacturers are already forecasting further production delays due to raw materials shortages, surging energy prices, and shipping issues. See below for more information to help you plan for continued uncertainty and minimize the impact on hospital operations.

  1. Raw Materials Shortages will Reduce Product Availability – Production of certain medical products will be limited by the availability of materials, including aluminum and steel, that were already in short supply. It may become difficult to get products built with these materials and, in the near term, expect costs to keep increasing. Russia and Ukraine are also both large producers of neon, platinum and palladium, which are key ingredients for chip production. Given existing chip shortages, expect longer order lead times and increased backorders for certain medical equipment.
  2. Energy Constraints and Surging Prices Will Increase Product Costs – With Russia as a dominant provider of energy to many European countries, the immediate disruption of oil and natural gas supplied by Russia will further complicate supply chain issues and production challenges for manufacturers. Global gas reserves are already strained; further limits on supply will drive prices higher with costs being passed on to buyers. For hospitals – expect prices for many products that were already inflated due to the pandemic to increase further and impact budgets through 2022, potentially longer.
  3. Shipping Costs and Transit Time Will Both Increase – As the industry has experienced over the past two years, shipping costs for imports have risen dramatically due to global demand, limited space and availability of shipping containers, and labor shortages that still persist. While US ports are recovering from the extensive log-jams that delayed shipments over the past months, the war in Ukraine is already creating new shipping and logistics issues. Port restrictions and closures, disruption of shipments into and out of Russia, Ukraine and other critical European ports, will increase the uncertainty and transit time for all types of products for the foreseeable future.

Hospitals are understandably fatigued with the supply chain issues that started back in 2020. For now, they will need to continue being flexible to adapt to volatile market conditions that will get worse. Plan for the product shortages, price hikes and shipping delays outlined above to ensure your hospital has the products needed to continue delivering patient care.

Have questions about market conditions or product availability? Please reach out. We’ll be glad to share the current updates we are receiving daily from industry suppliers and manufacturers.

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."