As global trade shifts, healthcare organizations are confronting the financial strain of rising tariffs on medical devices, equipment, and supplies.
These added costs are pressuring supply chains, leaving many healthcare leaders searching for ways to adapt while maintaining high standards of patient care.
In order to mitigate tariff-related risks and strengthen supply chain resilience, ECRI has offered 10 strategies that organizations can implement.
1. Identify cost-effective equivalents
Healthcare providers can offset rising costs by sourcing clinically acceptable functional equivalents that meet the same performance and safety standards. A thorough review using data-driven tools and clinical evidence is essential to validate vendor claims before integrating new products.
2. Diversify supplier base
Relying on a single supplier heightens risk. Expanding to multiple domestic and international vendors can increase flexibility and reduce vulnerability to supply chain disruptions caused by tariffs.
3. Monitor supply chain risks
Implementing real-time recall notification systems ensures that hazard alerts reach the right teams quickly, minimizing disruption and protecting patient safety.
4. Conduct supplier vetting and contract reviews
As procurement strategies evolve, rigorous supplier vetting processes and careful contract evaluations help maintain quality and regulatory compliance when introducing new vendors.
5. Optimize inventory management
Adopting automated inventory systems with predictive analytics allows healthcare organizations to forecast demand accurately, maintain safety stock, and prevent shortages triggered by supply chain delays.
6. Negotiate long-term contracts
Securing multiyear agreements with trusted suppliers can stabilize pricing and offer cost predictability. Including clauses for renegotiation in case of significant tariff changes helps maintain flexibility.
7. Explore domestic sourcing options
Shifting procurement to domestic manufacturers can reduce tariff exposure. A comprehensive cost-benefit analysis ensures that domestic sourcing aligns with quality, volume, and pricing needs.
8. Stay informed and advocate
Healthcare providers can engage with professional associations to stay updated on trade policy changes and advocate for exemptions or regulations that support healthcare supply chains.
9. Assess tariff exposure with the Harmonized Tariff Schedule
Using the HTS helps organizations understand which goods are affected and the broader cost impacts, enabling more informed sourcing and budgeting decisions.
10. Implement predictive replacement planning
A long-term capital equipment plan allows healthcare leaders to anticipate replacement needs, negotiate better pricing, and avoid last-minute, high-cost purchases.
Read ECRI's full guidance
here.