Premier Inc. calls for national stockpiling standards to prevent redundant efforts, next wave of product shortages

Premier Inc. calls for national stockpiling standards to prevent redundant efforts, next wave of product shortages

Press releases may be edited for formatting or style | July 01, 2020
CHARLOTTE, N.C. (June 30, 2020) – Nearly 90 percent of healthcare providers are contributing to stockpiles of critical medical supplies and drugs intended to last as long as 90 days, according to a recent survey conducted by Premier Inc. (NASDAQ: PINC), a leading healthcare improvement company. As new COVID-19 hotspots emerge, however, Premier’s survey shows local efforts to build stockpiles must be supported with a national strategy to avoid redirecting supplies away from front-line caregivers and exacerbating ongoing product shortages.

Premier’s survey found that either the health system or the state is directing the majority of stockpiling efforts, although product backorders are inhibiting requests to replenish the stockpiles and provide timely care. The products that providers cited as heavily backordered include:

N95 masks and bouffant caps (both cited by 53 percent of respondents)

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Isolation gowns and shoe covers (both cited by 49 percent of respondents)
Testing swabs and test kits (cited by 40 percent of respondents)
Surgical gowns (cited by 35 percent of respondents)
Exam gloves (cited by 32 percent of respondents)
Surgical masks (cited by 30 percent of respondents)
Syringes (cited by 7 percent of respondents)

“During the pandemic, the nation experienced a fragmented approach to securing supply that led to competition rather than coordination,” said Blair Childs, Senior Vice President of Public Affairs at Premier. “States and health systems need to feel confident in their ability to access an emergency stock of supplies, but absent a clear national strategy, we risk not being able to support providers through a regional surge in cases. To protect our front-line workers and patients, we must reinforce providers’ efforts with a national strategy that ensures coordination and reliability across stockpiles.”

Premier advocates for the creation of a national standard that integrates stockpiling needs at the federal, state and health system levels. Premier recommends a hub-and-spoke model that leverages the Strategic National Stockpile (SNS) as well as a network of state and health system stockpiles, with an emphasis on collaboration and coordination between the entities maintaining inventories of supplies. Premier’s recommendations enhance transparency within the SNS and create a national standard for all stockpiles, including those at the state or local level, to ensure consistency and interoperability.

“We learned from the first wave that a disconnected approach is unsustainable,” said David A. Hargraves, Senior Vice President of Supply Chain at Premier. “As we work alongside our members to increase access to critical products, we recognize the need for a cohesive national stockpiling strategy to help support and stabilize the U.S. supply chain. Premier’s stockpiling recommendations are holistic, and would enable the SNS to work for any group that may need to leverage its contents – an entity built by providers for providers.”

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