U of Iowa Hospitals & Clinics considers $1.35M lease for COVID-19 supply warehouse

University of Iowa Hospital & Clinics has asked its board of regents to rent a warehouse for $1.35 million to store personal protective equipment, according to The Gazette

The Iowa City-based health system said that the pandemic has prompted it to stock up on PPE, and it now needs space to store it. The board will consider the request this week, which would give the health system storage space for the next 10 years, The Gazette reported. 

"In response to the COVID-19 pandemic and the downstream effects of its supply chain, UIHC has greatly increased its emergency pandemic stock — as well as its stock of high-use medical supplies," the health system told the board.  

The lease would be for a 15,047 square foot warehouse that would cost the health system $1.35 million over the next 10 years. If approved, the warehouse would store durable medical equipment in addition to PPE, The Gazette reported. 

University of Iowa Hospitals & Clinics told the board that it has less confidence in the just-in-time inventory approach typically used by hospitals because of the supply chain challenges COVID-19 has presented. 

"Additional supplies procured by UIHC have helped to safeguard the hospital from supply chain disruptions and large spikes in demand," the health system said, according to The Gazette

The health system also said it needs the warehouse space because the supplies it has are currently taking up space needed for other operations and are being stored in places that make access difficult and inefficient. 

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