The last five years have fundamentally changed how health systems think about supply chain resilience.
An effort that was once centered on responding to shortages as they emerged has evolved into a more sophisticated strategy built on predictive analytics, formal risk management, diversified sourcing and stronger supplier oversight. The goal is no longer simply securing products, it is ensuring disruptions never reach the bedside.
For many health systems, better data has been the biggest shift.
Michael Brown, vice president of supply chain at Texas Children’s Hospital in Houston, said supply chain teams have moved away from relying on anecdotal information from vendors and toward analytics-driven decision-making.
“The stability we provide our organizations is directly related to how fast we can react to what the data is telling us; it’s been transformational,” he said.
Luke Martin, administrative director of supply chain management at Shannon Health in San Angelo, Texas, said improved analytics have similarly changed the organization’s ability to anticipate disruptions rather than simply respond to them, “which translates to better care for our patients.”
Several health systems have also built dedicated infrastructure around supply chain risk.
At Memorial Sloan Kettering Cancer Center in New York City, Aaron Tappan, vice president of supply chain and sustainability, said the organization had no formal resiliency program before 2024. Today, it operates a comprehensive risk framework that includes supplier monitoring technology, an internal incident-tracking platform and a supply chain risk governance committee. The next phase is expanding supplier monitoring while developing metrics to better measure resilience across the organization.
Montefiore Health System in New York City has taken a similar approach. Joe Wilson, vice president of supply chain services and chief procurement officer, said the system created a dedicated supply chain risk department that combines third-party risk management software with credentialing, recall and GPO intelligence to guide sourcing and inventory decisions before disruptions escalate.
Organizations are also rethinking where products come from and how much inventory they should carry.
Nalin Kulasekara, system vice president of ancillary operations and supply chain management at Hospital Sisters Health System in Springfield, Ill., said COVID-19 permanently changed the organization’s philosophy. The system has shifted from just-in-time inventory toward a just-in-case approach for mission-critical supplies, is working more closely with distributors to hold additional inventory and is placing greater emphasis on domestic and nearshore manufacturers. The health system is also investing in advanced analytics and AI to anticipate disruptions tied to geopolitical events.
Dameka Miller, senior vice president of supply chain management at Trinity Health, based in Livonia, Mich., said the system now places much greater scrutiny on sole-source products during sourcing decisions, evaluating supplier resilience, manufacturing capacity and geographic risks before contracts are signed. At the same time, disruption management has become standardized across the organization, with established processes for monitoring risks, identifying alternatives and communicating with stakeholders.
Others say resilience now extends beyond inventory to the overall design of the supply chain.
Michael Alfaro, director of materials management at Ventura, Calif.-based Community Memorial Healthcare, said the health system has shifted from reactive problem solving to building a resilient ecosystem through supplier accountability, stronger contract language and a multi-distributor strategy designed to absorb disruptions without affecting front-line caregivers.
Jason Moulding, chief supply chain officer at MultiCare Health System, based in Tacoma, Wash., said formalizing a dedicated risk and resiliency function has allowed the organization to combine internal and external data sources into actionable insights that help teams stay ahead of supply disruptions and better protect patient care.
Some systems have paired those broader strategies with practical inventory changes.
Les Feka, director of supply chain at Birmingham, Ala.-based Baptist Health Princeton Hospital, said his team has increased par levels for high-use products that frequently move to allocation while extending planning horizons and expanding safety stock. Those adjustments, he said, have helped minimize the impact of recurring supply disruptions on patients and staff.
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