GPO examines PPE supply one year into COVID-19
Premier, Inc. (Charlotte, NC) recently released a report that analyzed new data from its supply chain forecasting technology to assess the long-term impact on the supply chain one year into the pandemic. Has the situation improved compared to the demand spikes that characterized 2020?
The short answer is that while most hospitals are seeing greater availability of many types of PPE, the healthcare supply chain remains fragile and constrained.
“Massive increases in global PPE demand created the imbalance in the supply chain and have driven up raw materials prices, which impacts the cost of finished goods,” Premier said. “This has cascaded to providers who have incurred additional costs to acquire PPE, adding to existing margin pressures.”
For example, the American Hospital Association (AHA) estimates the additional costs associated with purchasing needed PPE for hospitals and health systems was $2.4 billion over a period of just four months, from March through June 2020, or roughly $600 million per month.
| Supply | Inventory Days on Hand During COVID-19 Spikes in 2020 | Inventory Days on Hand (March 1, 2021) | Percent Change in Purchase Order Spend for March 2020 vs. March 2019 | Percent Change in Purchase Order Spend for March 2021 vs. March 2020 |
| N95s and KN95s | 23 days | 200 days | +14,302 percent | +715 percent |
| Surgical Masks | 30 days | 45 days | +1,310 percent | +93 percent |
| Isolation Gowns | 20 days | 40 days | +428 percent | +96 percent |
| Exam Gloves | 15 days | 30 days | +51 percent | +225 percent |
PPE supplies
Related to specific product categories, Premier provided the following insights:
N95s and Surgical Masks. “N95 respirators and other masks have been among the most challenging products for healthcare providers to source and secure amid COVID-19. Active COVID-19 cases drove N95 demand spikes of up to 17X during the first wave.” One year later, the N95 market remains constrained but not in active shortage. Premier data shows that the average member now has about 200 days of N95 respirators on hand, even though N95 usage nearly quadrupled between April and December of 2020. “This greater on-hand availability is due, in part, both to health systems’ supply conservation measures as well as stockpiling efforts during periods of case decline.”
Isolation Gowns. “By mid-April 2020, global manufacturing ramped up to help meet the unprecedented demand spike for face masks and respirators, but this also produced an unintended consequence for isolation gowns supply. Both N95s and many gowns are made using the same spunbond meltblown spunbond textile processing capabilities (also known as SMS textiles). When manufacturers prioritized capacity to produce N95s and other masks in the spring of 2020, isolation gown supply compressed.” As a result, a Premier member survey found that isolation gowns surpassed N95 masks as the top PPE shortage concern in mid-April 2020, with 74 percent of respondents citing gowns access as their No. 1 concern. By May 2020, most health systems had only about 20 days of isolation gowns on hand.
Gloves. “Exam glove supply has been constrained throughout the COVID-19 pandemic, and availability challenges are expected to persist into 2023. Global demand for nitrile exam gloves currently exceeds existing production capacity by an estimated 215 billion units, or nearly 40 percent. Raw material scarcity, port closures and delays, and a two-fold increase in gloves usage since June 2020 have exacerbated ongoing shortages. In a January 2021 survey, Premier members cited access to exam gloves as the No. 2 greatest challenge to care for COVID-19 patients, after clinical staffing. And as of March 1, 2021, most Premier members have fewer than 30 days on hand.”
To read the report, visit www.premierinc.com/newsroom/blog/premier-data-the-state-of-ppe-supply-one-year-in-to-covid-19.