AHRMM Novel Coronavirus (COVID-19) Update

PPE Resources and Availability

AHRMM Recommendations on COVID-19 for Health Care Supply Chain

COVID-19 was the perfect storm and exposed the fragile nature of the health care supply chain. Early in the pandemic, key supply chain channels in globally concentrated locations closed, leading to decreased production and exports of PPE, drugs and other essential supplies while at the same time there was a global increase in demand for these very same products. This has led many hospitals and health systems to rethink and transform their supply chain models. From exploring and expanding partnerships with peers, traditional and non-traditional manufacturers and community based businesses, establishing redundancy to lower or eliminate risk, leveraging digital technologies to better understand product utilization and anticipate needs, and updating supply chain strategies including:

• Moving away from a singular focus on product pricing to an evidence-based approach that improves patient quality and outcomes while lowering the total cost of care, principles of AHRMM's Cost, Quality and Outcomes Movement.
• Contracting strategies that include the appropriate evaluation and use of multi-source contracts, and a diversified vendor and manufacturer portfolio to ensure diversification exists not only at the vendor level, but that there is diversification in the manufacturers that vendors source from.
• A revaluation of JIT and Lean inventory management methodologies which has created an efficient supply chain in times of calm, but severely restricts our ability to flex in times of increased demand.
• Increase bi-directional supply visibility and transparency while addressing basic human behaviors to hoard supplies.
• Reassess operational and surge inventories as two separate inventories, or should they be viewed as a singularly managed inventory, one that extends upstream to the distributor and manufacturing levels and comprises the entire health care supply continuum. For more information, review the AHRMM HCLC Executive Summary on Recommended Inventory Reserve Strategies.
• Explore the creation of clinically acceptable substitutes at an industry level rather than at an individual HCO/value analysis level. This would improve and strengthen the ability to adapt and ensure uninterrupted or consistent product availability in times of increased demand.
• What is the most efficient and effective approach to augmenting the SNS? Is it through state mandated DIOH, regional coalitions or each hospital building their own surge inventories?
• Frequent reviewing/increased usage of the the FDA list of essential medicines, medical countermeasures and critical inputs.

Additional COVID-19 Resources