Hospital supply chain costs have steadily risen in 2025, with concerns simmering about even larger increases coming amid policy changes.
Here is the current state of supply costs:
1. A July Vizient report found that medical supply chain costs are expected to rise 2.41% in 2026 — upped from the 2.3% predicted in January. The change is driven by IT services, capital equipment and surgical supply costs.
2. Pharmaceutical prices are also forecast to rise 3.35%, driven by a surge in high-cost therapies such as GLP-1s and CAR-T treatments.
3. Tariffs are playing a large role in rising device and drug costs. Several industry groups are warning that tariffs on foreign-made medical goods — including personal protective equipment, consumables, devices and drugs — are already upping costs and interfering with care delivery. AdvaMed, a national medtech trade group, said tariffs imposed earlier in 2025 have already driven up costs and reduced investment in research. Manufacturers face “multi-year lead times and multi-million-dollar investments” to shift suppliers, and small and midsize companies could be forced out of the market if new costs cannot be absorbed. The American Hospital Association said Oct. 17 that tariffs could “inadvertently disrupt the availability of diagnostic and treatment tools and hinder access to PPE that is essential to protecting the workforce and patients.”
4. Indirect costs are also expected to rise, with IT services alone going up by 5.5%, according to Vizient.
5. About 250 medications are in shortage nationwide. These shortages could get worse if tariffs proposed this summer go into effect. As of Oct. 7, President Donald Trump has delayed proposed tariffs on branded medication to continue negotiations with drugmakers. For months, the Trump administration has been going back and forth on pharmaceutical tariff rates. This summer, the U.S. capped tariffs on pharmaceutical exports from the European Union to 15% and exempted generic drugs from a 15% baseline tariff applied to Japanese products.
6. An ECRI report found many hospitals and health systems rely on expensive, durable equipment to deliver care, yet approach repairs and replacements reactively. This means waiting until imaging systems, surgical tools and HVAC infrastructure fail before taking action. This is leading to higher costs and missed opportunities for optimizing care delivery, the report said.
