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Supply and demand are economic principles; they are the demand for goods and services against the availability of those goods or services. High supply and low demand result in low prices that make goods affordable to anyone in society. On the other hand, when supply is low and demand is high, the price goes high, and products become limited or expensive (Santana et al., 2021). This principle is crucial in healthcare when defining the distribution and costs of various medical services and treatments. Healthcare is an inelastic product as patients require medical attention irrespective of the price, especially under critical conditions. When more people require health care services like surgery or consultation, and there are fewer providers, the costs are likely to go up because of limited availability.
On the other hand, if there is an excess production of healthcare professionals and facilities, the prices may decline, thus increasing the affordability of healthcare. Events such as the COVID-19 pandemic exposed how vulnerable supply chains for essential commodities such as PPE and ventilators are to disruption. Additionally, market power with the providers, government-controlled prices, and most healthcare organizations being non-profit organizations alter traditional supply and demand functions, making inefficiencies and high costs inevitable compared to other markets.
COVID-19 Pandemic Contribution to Major Shortages of Needed Supplies and Equipment
The COVID-19 outbreak severely affected operations in the global supply chain, thus affecting healthcare. One of the major causes was the dramatic increase in the demand for unique individual protective products like masks, gloves, or gowns (Cohen & van der Meulen Rodgers, 2020). Medical professionals and institutions across the globe needed colossal amounts of such things to shield patients and personnel from the virulent pathogen. This demand rose steeply to a level that greatly surpassed the readily available supply, thus causing severe scarcities. Almost all countries, including America, were found wanting in preparedness, needing more reserves to meet the initial demands. The existing manufacturing capabilities at the beginning of the pandemic, concentrated in specific locations like China, could not cope with the demands, leading to delays and shortages that worsened the situation.
The pandemic has also revealed shortages of other medical equipment required for patient treatment, including ventilators and hospital beds in the operations' supply chains. With an increasing number of COVID-19 infections, hospitals were pushed to the limit of their capacity to admit a large number of severely ill patients. Among them, there was a chronic shortage in the availability of ventilators needed for treating severe respiratory manifestations of the virus (Ranney et al., 2020). Some products generated so much demand that the manufacturing companies could not rise to the occasion and meet the demand. Moreover, issues such as transportation and export bans due to some countries adopting policies to address the needs of their citizens make it difficult to distribute these products. As a result, most healthcare facilities had to adopt rationing policies that reduced the quality and determined the allocation of limited resources, affecting patients' care.
The pandemic exposed the vulnerability of the pharmaceutical logistics systems around the world. They are heavily dependent on an extensive network of suppliers for drugs and other raw materials, which are often sourced from a few countries. Implementing lockdowns and closing factories in these areas resulted in interruptions in production and distribution, which impacted the availability of generic and essential drugs used to manage patients with COVID-19 (Ranney et al., 2020). The increased demand for some drugs, like those used in intensive care units, added pressure to supply chain constraints. These interruptions highlighted the fragility of the pharmaceutical supply chain and led to demands for the development of domestic production capabilities and stronger contingency mechanisms. The pandemic was a wake-up call to ensure a dependable and diverse supply source to order these vital medical products and equipment on demand.
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In light of the manager of a radiology department, the idea of future scarcity, which is founded on a pandemic situation, is very worrying. In this case, one of the critical scarcities that may develop is imaging equipment and maintenance parts. During the COVID-19 outbreak, imaging equipment such as CT and X-rays was often employed for respiratory symptoms. Such a rise in the demand for imaging can lead to the depletion of the available supply of equipment and parts for maintenance and repair, thus impacting operations. The shortage would be further compounded by delayed production and supplies, particularly if the crisis affects the suppliers. Moreover, disruption in the supply chain can exacerbate the challenges of acquiring the necessary parts to maintain the optimal performance of imaging machines. In such circumstances, radiology departments can be under pressure to meet the increased need for diagnostic imaging. Hence, practical and strategic planning and supplier management are crucial to preparing for future pandemics.
Another crucial aspect is the supply of contrast agents and other consumables used during imaging procedures. These agents are crucial in improving the quality of scans and coming up with the correct diagnosis. However, disruptions to supply chains result in a shortage of these crucial materials, which profoundly affects the possibility of performing relevant procedures in the department. Moreover, in the radiology department, there may be a shortage of protective equipment for personnel, like lead aprons and shields, which are required for patient and radiology technician safety during imaging procedures. This shortage can cause higher levels of radiation exposure and endanger safety measures. There is always the need to have an adequate stock or a constant replenishment of protective wear. Preventive steps should be taken to avoid such shortages that would dearly cost the health of the patients and the employees.
The radiology department can adopt the following strategies to offset or avert these shortages. First, it is necessary to gain strong partnerships with several suppliers and constantly update the required equipment and parts (Tay et al., 2021). One way of minimizing vulnerability to disruptions from overseas sources is to localize the supply chain by involving more local and regional suppliers. Moreover, implementing a just-in-case stock holding policy whereby the company stocks up on certain items is helpful during increased demand. This approach requires efficient planning and supplier integration to meet the inventory requirements. It is also noteworthy that proper management can avoid excessive expenditures while remaining prepared for emergencies. It enables crucial products to be on the shelves whenever customers demand them.
Other ways to avert shortages that come with equipment breakdown are ensuring preventive maintenance and training staff to do minor equipment maintenance. The training sessions and proper maintenance schedules can increase the duration of significant repairs and help the department stay fully functional, even in the case of supply chain problems. Also, building relationships with other healthcare organizations for equipment and personnel exchange and assistance in emergencies is helpful. They are establishing a network similar to rental services where facilities swap equipment and supplies to aid in solving short-term shortages. This integration of care contributes to the sustainment of CHWs' support and the overall strength of health systems. They are essential to sustain the quality of services while ensuring readiness in any form of an emergency.
Improved use and application of technology and innovation in supply chain management can go a long way in preventing future supply shortage crises. First, using teleradiology solutions may decrease the necessity of using physical presence and equipment in some cases, which helps decrease the load on the existing resources (Tay et al., 2021). Using accurate and sophisticated software to manage the department's inventory can improve tracking and make the forecasting system precise to help the department detect when it will run out of materials and take necessary action. Another approach could involve having the staff regularly undergo training and developmental sessions so that the team is ready for the worst times and capable of handling shortages of supplies, new technologies, and other changes. Thus, following these comprehensive preventive measures, the radiology department can be more ready and vital for future pandemics or similar situations.
Strategies Healthcare Leaders Can Implement
To avoid future contingency of similar real-world disruptions, supply chain managers in the healthcare sector can proactively design strategies encompassing supply chain diversification and resilience. This involves developing partnerships with many suppliers in various locations to minimize the reliance on a single supplier. This way, healthcare organizations reduce their supply risks from regional disruptions ranging from natural calamities to geopolitical instability that may stop crucial medical supplies. Also, healthcare leaders should focus on establishing regional buffers of such supplies and products as PPEs, drugs, and equipment (Arji et al., 2023). Some of these inventories help as a safety stock for the amount of essential commodities required to meet surges in consumption in the event of an emergency. Periodic checks and turnover of stored supplies are recommended to ensure that these are still effective and in a proper state for utilization.
The second strategic direction for supply chain management is the application of sophisticated technologies and big data to improve the visibility and decision-making of a supply chain. Healthcare executives should use supply chain management software to give details of inventory status, suppliers, and risks at a glance. Using big data makes it easier to predict demand patterns and detect weaknesses that may precipitate a disruption before they happen (Arji et al., 2023). Furthermore, using blockchain technology in the supply chain will enable tracking and increase the authenticity of the medical supplies. Some strategies for developing a solid supply chain include implementing sound inventory management tools and ensuring that employees are sensitized to the right ways of managing the chain. Liaison with suppliers and other relevant parties can enhance coordination and response time in a Supply chain crisis. These technological advancements and practices are combined to foster a healthcare supply chain that can sustain future disruptions.
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- Arji, G., Ahmadi, H., Avazpoor, P., & Hemmat, M. (2023). Identifying resilience strategies for disruption management in the healthcare supply chain during COVID-19 by digital innovations: A systematic literature review. Informatics in Medicine Unlocked, 38, 101199. https://doi.org/10.1016/j.imu.2023.101199
- Cohen, J., & van der Meulen Rodgers, Y. (2020). Contributing factors to personal protective equipment shortages during the COVID-19 pandemic. Preventive Medicine, 141(141), 106263. https://doi.org/10.1016/j.ypmed.2020.106263
- Ranney, M. L., Griffeth, V., & Jha, A. K. (2020). Critical Supply Shortages — The Need for Ventilators and Personal Protective Equipment during the COVID-19 Pandemic. New England Journal of Medicine, 382(18). Nejm. https://doi.org/10.1056/nejmp2006141
- Saba Hinrichs-Krapels, Lazarus Tombo, Boulding, H., Majonga, E. D., Cummins, C., & Semira Manaseki-Holland. (2023). Barriers and facilitators for providing radiology services in Zimbabwe: A qualitative study based on staff experiences and observations. Barriers and Facilitators for the Provision of Radiology Services in Zimbabwe: A Qualitative Study Based on Staff Experiences and Observations, 3(4), e0001796–e0001796. https://doi.org/10.1371/journal.pgph.0001796
- Santana, I. R., Mason, A., Gutacker, N., Kasteridis, P., Santos, R., & Rice, N. (2021). Need, demand, supply in health care: working definitions, and their implications for defining access. Health Economics, Policy and Law, 18(1), 1–13. https://doi.org/10.1017/S1744133121000293
- Tay, Y. X., Kothan, S., Kada, S., Cai, S., & Lai, C. W. K. (2021). Challenges and optimization strategies in medical imaging service delivery during COVID-19. World Journal of Radiology, 13(5), 102–121. https://doi.org/10.4329/wjr.v13.i5.102