Supply chain leaders are under intense pressure as they manage evolving challenges like policy shifts, increasing costs, and the impact of tariffs. As a result, healthcare systems are re-evaluating their conventional approaches to sourcing and procurement.

Becker’s Hospital Review recently asked five pharmacy leaders this important question: What is the most significant supply chain challenge or transformation you’re seeing in 2025, and how is your health system responding to it? 

What Industry Leaders Are Saying—and Doing—About Supply Chain Challenges

This blog explores their answers and other solutions for navigating economic uncertainty and its impact on healthcare supply chains.

Amanda Chawla, Chief Supply Chain Officer at Stanford Health Care (California): Stanford Health’s supply chain team is prioritizing three main areas to address current challenges:

1. Managing Costs: In response to financial pressures, Stanford is strengthening its non-labor expense management efforts. Beyond negotiating better pricing, the team is working closely with departments to identify inefficiencies and reduce waste in how goods and services are used.

2. Improving Supply Resilience: To tackle persistent supply disruptions, Stanford is developing a long-term resiliency program. This includes partnerships for better disruption management and working with clinicians to use equivalent products that maintain care standards while stabilizing supply availability.

3. Enhancing Data and System Transparency: In 2024, Stanford invested in a new cloud-based ERP system to streamline operations and improve visibility. This upgrade is designed to support more efficient, transparent decision-making and simplify processes through better data access and automation.

Bruce Mairose, Division Chair of Supply Chain Management Sourcing and Networks at Mayo Clinic (Minnesota): In early 2025, U.S. tariffs emerged as the primary challenge for Mayo Clinic’s supply chain, requiring significant resource reallocation to address rising costs and potential disruptions. A dedicated task force was formed to manage these risks, especially as some suppliers refused to engage in RFPs due to market uncertainties. In response, Mayo extended short-term contracts with willing suppliers who could maintain prices and absorb tariffs.

To ensure pricing transparency, Mayo is working with suppliers to analyze tariff impacts by product and compare these across vendors. They’re also exploring lower-tariff sourcing options and shifting some products to more cost-effective alternatives. While patient care remains the top priority, these tariff-related pressures have slowed broader industry innovation and transformation efforts, particularly in areas like inventory management and provider-supplier collaboration.

Meena Medler, Chief Supply Chain Officer at Sutter Health (California): Controlling supply costs while maintaining operating margins has been a major challenge due to ongoing inflation, pandemic aftereffects, and tariffs. In response, the organization is shifting to a value-driven, comprehensive strategy that goes beyond conventional supply chain practices. By adopting a model similar to manufacturing supply chains, the goal is to form strategic partnerships that reduce waste and enhance overall value. This approach emphasizes collaboration over simple cost-cutting, as demonstrated by the GE partnership and other developing alliances.

Andrea Poulopolos, Senior Vice President of Supply Chain at Corewell Health (Michigan): In response to unexpected natural disasters and growing trade challenges, Corewell Health is experiencing a significant shift in how its clinical and supply chain teams work together. Through close collaboration with clinical partners who actively support sourcing efforts, the organization has been able to navigate complex procurement decisions and build strong alignment. This unified approach highlights the power of teamwork and trust in overcoming today’s supply chain challenges.

Bob Taylor, Senior Vice President of Supply Chain at RWJBarnabas Health (New Jersey): In 2025, a key challenge for the supply chain is delivering cost savings amid widespread economic pressures, including tariffs, inflation, product shortages, and rising expenses. These forces impact the entire health system, placing added responsibility on the supply chain to manage and counteract them—while also advancing operational strategy and technology, despite limited resources.

To address this, the organization is reviewing all spending categories—ranging from utilization and commodities to indirect costs and physician preference items—to identify cost-saving opportunities. Strong supplier partnerships are being used to expand initiatives and better assess potential areas for savings.

Tariffs’ Impact on Medical Devices and Other Healthcare Costs

Possible tariffs on goods imported to the U.S. from the European Union could cause a significant impact on medical equipment costs, costs that would likely be passed along to patients. According to a recent article in The Washington Post, medical device companies are on high alert in preparation for a potential financial fallout.

Siemens has raised concerns that trade policies and tariffs on medical equipment will ultimately harm patients by limiting access to critical technologies like CT scanners. Company leadership emphasized the human impact, warning that people in the U.S. could be denied important screenings due to policy decisions. A Bank of America survey supports this concern, with 91% of hospital CFOs expecting equipment costs to rise, and nearly half predicting further increases in 2025. Industry leaders warn that tariffs could slow innovation, eliminate jobs, and drive up overall healthcare costs.

In response to economic uncertainty, health systems are taking several proactive steps to manage rising costs and safeguard patient care:

• Diversifying Suppliers: Health systems are expanding their supplier base, including sourcing from non-affected countries or domestic vendors, to reduce reliance on regions subject to tariffs.
• Strategic Stockpiling: Some organizations are increasing inventory levels of essential items that may be impacted, ensuring continued availability during supply disruptions.
• Contract Re-negotiation: Procurement teams are revisiting vendor contracts to lock in pricing or include clauses that account for tariff-related cost fluctuations.
• Clinically Equivalent Alternatives: Hospitals are collaborating with clinicians to identify and approve substitute products that offer the same clinical outcomes but may be more cost-effective or readily available.
• Improved Forecasting and Analytics: Advanced data analytics are being used to better predict demand and assess tariff impacts, helping supply chain leaders make more informed decisions.
• Resilience Planning: Many health systems are building long-term supply chain resiliency programs, which include risk assessments, scenario planning, and closer alignment with suppliers.

These strategies are designed to minimize disruptions, maintain care quality, and manage financial impact in a volatile global trade environment.

Making the Right Decision When Every Decision Matters

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