Tariff Implications for American Health Care

Most hospitals and health systems are the largest organizations in our communities, providing critical services needed by every one of our neighbors. We take care of our communities as best as possible — which means advocating for the support and resources we need.

A series of tariffs recently implemented could have significant implications for health care. A large proportion of medical goods currently comes from international sources, including pharmaceuticals, medical devices and personal protective equipment, as well as other low-margin, high-use essentials like syringes, needles and blood pressure cuffs.

Tariffs on these items could impact patient care by jeopardizing the availability of vital medications and essential health care devices. They also could raise costs for hospitals and heighten shortages and supply chain disruptions.

We’ve already seen the impact of supply chain disruptions in the aftermath of Hurricane Helene. To continue providing the care our communities rely on, hospitals and health systems need exemptions to ensure access to essential imports.

AHA President and CEO Rick Pollack has urged the administration to provide tariff exemptions for medications and medical supplies.

The AHA also recently responded to a request for public comment on the Department of Commerce’s Section 232 national security investigation on pharmaceutical and pharmaceutical ingredient imports, urging the administration to maintain tariff exemptions to minimize inadvertent disruptions to patient care.

We’ve seen the creativity, innovation and resiliency of our hospitals to deliver patient care during the pandemic and other challenging circumstances. Health care leaders can work toward evaluating their supply chains to look for alternate sources, even as we advocate on behalf of our patients.

There also is an important opportunity to make the supply chain more resilient. AHA has been working with Congress to urge consideration of legislation that would support efforts to proactively map and assess the pharmaceutical, medical device and equipment supply chains.

I will be talking with Brian Pomper, partner with Akin Gump Strauss Hauer & Feld, and Akin Demehin, AHA’s vice president of quality and patient safety policy, for an upcoming Leadership Dialogue on tariffs. Join us to learn about the potential impact on health care and how leaders can prepare.

Helping You Help Communities: Key AHA Resources

Supply chain management