Hospitals may face renewed supply chain pressure heading into 2026, including rising material costs to tariff-driven disruptions.
Here are seven developments leaders should watch:
1. Medical supply chain expenses are expected to rise more than previously projected. Vizient’s Summer 2025 Spend Management Outlook now forecasts a 2.41% increase in 2026, up from the 2.3% estimate released in January. Higher pricing for IT services, capital equipment and surgical supplies is expected to drive much of the growth.
2. Pharmacy budgets will feel additional strain. Drug prices are projected to grow 3.35% next year, propelled by high-cost therapies, including GLP-1 medications and CAR-T treatments. Indirect expenses — particularly IT — could rise 5.5%, adding to overall operating pressure.
3. A federal audit uncovered millions in improper payments. HHS’ Office of Inspector General identified $22.7 million in Medicare payments made to suppliers between 2018 and 2024 for DMEPOS items delivered to beneficiaries during inpatient stays, a scenario in which hospitals are responsible for providing such items directly or through contracted partners. The findings could lead to increased scrutiny and compliance reviews.
4. Tariffs on foreign-manufactured medical goods are elevating costs across the sector. Industry organizations, including AdvaMed, report that tariffs introduced earlier in 2025 on PPE, consumables, devices and pharmaceuticals have already increased operating expenses and squeezed R&D budgets. Smaller manufacturers may struggle to absorb the long lead times and substantial investments required to reconfigure supply chains.
5. Drug shortages could intensify amid uncertainty around additional tariffs. Roughly 250 medications are already in shortage nationwide. New tariffs on branded drugs, currently delayed by President Donald Trump as negotiations with biopharma companies continue, could further destabilize supply if implemented.
6. Shifts in international tariff policy may alter sourcing strategies. Over the summer, the U.S. set a 15% cap on tariffs for pharmaceutical imports from the European Union and exempted generic drugs from the baseline tariff applied to Japanese products.
7. A pending Medicare policy change could affect access to advanced wound-care materials. A rule scheduled for Jan. 1 would eliminate reimbursement for many skin substitute products used outside facility settings, including physician offices and home-based care. The Medicare Access to Skin Substitutes Coalition warns the change may push certain manufacturers out of the market and limit availability of grafts commonly used to treat chronic wounds such as diabetic foot and venous leg ulcers, increasing risks of infection, amputation and mortality.
