IM_Wyonch_2022_0612.pub

The results is that inflation is currently being absorbed along the supply chain resulting in increased costs for producers and shortages, backorders, and delays of medical supplies being available for patients and practitioners. [...] Supply chain issues affect manufacturers of pharmaceuticals and medical devices, with some critical input supplies limited by COVID-19 lockdowns in China, Russia’s invasion of Ukraine and the resulting sanctions, and prices rising in the face of shortages and disruptions. [...] Prices for plastics and resin, a critical input for injectables and other devices, have doubled and transportation costs have tripled in some cases. [...] Meanwhile, demand for healthcare has increased, in part due to backlogs and disruptions in access to care caused by COVID-19 and in part due to directly fighting the pandemic (hospitalizations, public health and vaccination campaigns, etc.) With high demand and low supply, economic theory suggests prices for medical products and wages for health service providers will increase, if shortages are to. [...] Governments and purchasers should consider flexible arrangements for contracts and pricing with suppliers and manufacturers to share the risks of inflation and shocks affecting global markets, to ensure adequate supplies of essential medical products are available in Canada.