The risks of tariffs, fears of cuts, and flu cases surge
Hospitals and health systems are warning that President Trump’s tariffs could have unintended consequences.
The trouble with tariffs leads off our latest edition of CHE 360, a LinkedIn newsletter from Chief Healthcare Executive?. I’m Ron Southwick, lead editor of Chief Healthcare Executive.
Hospitals are warning the Trump administration that tariffs could lead to higher costs and shortages of critical drugs and medical supplies. Rick Pollack, president and CEO of the American Hospital Association , sent a letter to Trump outlining his concerns.
Pollack warned Trump that “the approach of using tariffs may inadvertently put others' lives at risk by jeopardizing the availability of vital medications and essential health care devices.”
Health systems worry that the president's tariff plans are also going to add to more cost pressures. For hospitals, the potential headaches of higher costs come as they continue to face supply shortages, says Mark Hendrickson, director of supply chain policy for Premier Inc.
“There are a number of product shortages in the market, and have been for a long time, both drugs and devices,” Hendrickson says.?
With Trump looking to cut costs, hospitals are worried about the prospect of cuts to Medicaid.?
Chip Kahn , president and CEO of the Federation of American Hospitals , said health systems are dreading the prospect of cuts. He talked about those concerns during a conversation on Healthy Bottom Line, a podcast from Chief Healthcare Executive?.
Khan boiled his concerns down to one word: “Coverage, coverage, coverage.”
Many hospitals rely on Medicaid, and if more Americans lose coverage, hospitals will end up caring for more patients with no ability to pay. Check out our wide-ranging conversation, and you can subscribe to Healthy Bottom Line wherever you get your podcasts.
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Some lawmakers and healthcare advocates are expressing more anxiety about Medicaid, with Elon Musk gaining access to the Centers for Medicare and Medicaid Services.
Some cuts aren’t just theoretical. The National Institutes of Health announced that it is cutting billions of dollars in reimbursements for “indirect” research costs. The NIH says it is aiming to control spending on overhead and wants to ensure money goes to research, and the agency said the move would save $4 billion annually.
Universities and medical schools were alarmed by the cuts. They say the cuts will stall some research, slowing progress toward breakthroughs and leading to job cuts. A federal judge has temporarily blocked the cuts after more than 20 states filed suit.?
Read more: Medical schools, colleges denounce NIH cuts
Hospitals are struggling with a surge in flu cases. Federal and state officials say more people are being hospitalized with the flu, and some hospitals say they are packed with patients.?
On a more upbeat note, Children’s Hospital of New Orleans has adopted a new name: Manning Family Children's . The pediatric hospital has taken the name name after reaching a partnership with the famed football family. Archie Manning, the patriarch of the Manning family, played most of his NFL career in New Orleans. Of course, his sons, Peyton and Eli, won a total of four Super Bowls in their own spectacular careers.
Finally, the ViVE digital health conference is kicking off this weekend in Nashville. I’ll be in Music City to cover the conference, and judging from my calendar, I’m talking to at least some of you. Look for full coverage of ViVE in the coming days.
Thanks for reading and take care.