Medical Appliance School Gets $3.8 Billion to Expand Business, Expanded Facilities, and Staffs
By SANA-AFP, MARGARET A. SALAZAR, AND ANNE-MATT BOWEN, SANTA ROSA, CAUANNA DEL PUBLICO-RIVERSIDE-CAUANNE DEL VALLE, CAUSES AND SEARCH ACTIONS by John B. MillerIn February, a consortium of U.S. companies announced plans to invest $3 billion in an expansion of its medical appliance business, including a new facility in Southern California.
The investment comes as the medical appliance industry continues to face severe supply shortages and a global economic downturn that has brought a slowdown to the supply chain.
The California Health Care Association and the U.N. Development Program released a joint report on medical appliance supply chain management on March 17, noting that a lack of adequate medical equipment could hamper the ability of health care providers to deliver the care they have been promised.
The report said that medical appliance suppliers, medical device manufacturers and manufacturers of medical equipment are facing shortages in the medical supply chain, with shortages reaching at least 50 percent in some regions.
In a statement, the association said the health care industry is in a dire position because of supply constraints that are impacting the health of consumers.
The group cited the recent spike in the cost of a medical device and the shortage of medical appliances, including the latest medical appliance models, as factors that have led to the shortage.
The association said there is an urgent need to ensure the medical appliances market remains a viable, reliable and competitive one, as well as to help meet the growing demand for medical devices in the U, including for the treatment of chronic conditions.
A hospital and nursing home care provider who spoke on condition of anonymity said the shortage has left many medical appliances patients and their families with long waits to see specialists and hospitals.
“When we went into that hospital, we saw patients with congestive heart failure, diabetes, multiple sclerosis and a host of other conditions,” said the hospital administrator.
“Now we’re seeing that the same person is in that same condition because of a shortage of a specialty medical appliance.”
The shortage has resulted in delays and additional costs for medical appliances providers, including more than $6 billion in healthcare-related expenses in 2017, according to a 2016 report from the International Federation of Healthcare Organizations.
The state of California has not approved or approved any new medical appliance projects in the state since 2019, according the California Medical Devices Association.
The association said it has been meeting with the state Department of Public Health and the California Department of Industry, Commerce and Consumer Protection.
The group also expressed concerns about the availability of new medical equipment to physicians, especially as medical supply chains continue to suffer from disruptions due to a severe economic downturn.
“The supply chain is being disrupted due to the severe economic climate and the fact that the demand for healthcare is not growing,” the association wrote in its statement.
“Medical supply chains are not able to keep up with demand for high-end medical equipment, which has contributed to the current shortage.”
The association also cited concerns that hospitals and nursing homes are having to provide less intensive care and that hospitals are paying out more than the medical products they need.