A November report from Kaufman Hall shows that supply chain costs are still on the rise, and physicians and practices should not expect that to change in 2024.
Since the COVID-19 pandemic, practices have faced a myriad of supply challenges, from shortages to quality recalls to costs rising 11% year over year.
Moody's has even cited medical supply costs as one of the largest possible revenue killers for practices in 2024.
Now, the federal government has taken steps to improve the medical supply chain, with the Biden administration enacting Title III of the Defense Production Act, which was first introduced in 1950 during the Cold War to bolster research, development, production and scaling of essential supplies.
Due to the government's efforts and lightening pressures from the peak of the pandemic, some spine surgeons are cautiously optimistic about the state of the supply chain in 2024.
"It's getting better, but seems whimsical and different at every facility," Lali Sekhon, MD, PhD, neuro and spine surgeon at Reno (Nev.) Orthopedic Center, told Becker's.
While officials have warned that the supply chain will not be returning to "normal" anytime soon, things might be looking up for some facilities.
However, costs remain high, which is having a disproportionate impact on smaller facilities and private practices.
"Overall, it [the supply chain] is significantly improved compared to during the pandemic. However, the prices are still a challenging aspect for smaller organizations or independent practices. The bigger organizations have the power to negotiate their prices, discounts and payment arrangements," Issada Thongtrangan, MD, orthopedic spine surgeon at Microspine in Scottsdale, Ariz., told Becker's.
In November, Robert Califf, MD, the 25th commissioner of the FDA, outlined steps the organization is taking to address supply costs and shortages headed into 2024.
While supply chain predictions are still gloomy, physicians are showing growing optimism as the government takes steps to improve the market for practices and providers in the new year.