Improving Medical Supply Chain Resiliency
Medical supply chains are critical to ensuring the health and security of Americans鈥攁nd Congress should act to bolster their resiliency, the 17吃瓜在线 members of Congress this month.
What鈥檚 going on: 鈥淭he COVID-19 pandemic brought to light the risks and instability resulting from concentration and choke points in medical supply chains, though the pandemic also showed how medical supply chains can quickly adjust to external shocks,鈥 17吃瓜在线 Managing Vice President of Policy Chris Netram told Reps. Brad Wenstrup (R-OH), Blake Moore (R-UT) and August Pfluger (R-TX) in response to a on how to improve medical supply chains.
What should be done: The 17吃瓜在线 recommended that Congress should work with manufacturers 鈥渙n a comprehensive approach to find ways to onshore, near-shore and friend-shore more of the medical supply chain,鈥 Netram continued.
There are several actions the federal government should take to fortify medical supply chains, including:
- 鈥淸C]reating an environment where small businesses can continue to thrive鈥 and where large companies can maintain their pandemic-era practices of 鈥渓everaging sources of domestic production when feasible, working with existing smaller suppliers to improve their reliability鈥 and sourcing goods through new suppliers;
- Streamlining the Food and Drug Administration鈥檚 new-supplier certification process;
- Taking 鈥渃reative steps to incentivize onshoring, near-shoring and friend-shoring, as opposed to imposing punitive or unworkable requirements to do so鈥;
- Passing the Medical Supply Chain Resiliency Act (H.R. 4307/S. 2115), which would authorize the president to strategically create new trade agreements specific to medical goods with our allies and partners;
- Strategically refining Section 301 tariffs on imports from China;
- Restoring 鈥 and full expensing of capital equipment purchases,鈥 ensuring 鈥渢hat the does not exceed 21%鈥 and making the permanent; and
- Completing 鈥渞eauthorization of the Workforce Innovation and Opportunity Act and expansion of Pell grant eligibility to short-term training programs,鈥 as well as supporting solutions that incentivize companies to collaborate to reduce the manufacturing-worker shortage.
The bottom line: 鈥淸A]n approach that creates incentives that reduce the cost and complexity of moving supply chains can help U.S. manufacturers to be more resilient in the face of a future global crisis and better able to serve patients who depend on these products,鈥 Netram said.