What this year’s record storm season means for the healthcare supply chain

Introduction

The 2024 hurricane season has already proven to be one of the busiest on record. Just over midway through the season, the US has already weathered three hurricanes and two tropical storms.?

Hurricane Beryl, the earliest category 5 hurricane on record, forced four Gulf Coast ports in Texas to close. One month prior to this, Tropical Storm Alberto brought heavy rains and port closures to Texas and Mexico as well.?

Amid these record-setting storms, healthcare supply chain leaders must address the challenges of an increasingly volatile supply chain landscape.??

In the following article, we explore three implications of this year’s record storm season for the healthcare supply chain, including more frequent disruption, healthcare vulnerabilities, and distribution challenges. To close, we highlight several strategies to adapt to the ongoing rise in severe weather events.?

More frequent and costly supply chain disruption

Since the beginning of this year’s hurricane season, multiple storm systems have already disrupted critical ports and supply chain infrastructure across the East and Gulf Coasts. Estimates show that the damages from these storms so far have totaled nearly $9 billion.?

The healthcare supply chain is highly sensitive to weather disruptions. This is in part due to healthcare facilities’ reliance on timely delivery of critical products like pharmaceuticals, medical devices, and personal protective equipment (PPE).?

With life-saving medical products like these, even minor delays or shortages can have severe consequences for healthcare. When major storms shut down ports and medical supplies can’t be delivered, procedures, providers, and patient safety are all at risk.?

There’s also the risk of spoilage of temperature-sensitive medications, including vaccines, insulin, and other specialty medications. These products are particularly expensive to replace, with the average cost ranging from hundreds to thousands of dollars per dose.?

The strain created by these delays is exacerbated by the healthcare sector’s limited capacity to maintain extensive stock due to the short shelf-life of certain products. This reality increases the risk of stockouts when weather disruptions occur, especially in high-demand environments like emergency rooms and operating rooms.?

More vulnerable healthcare facilities

In addition to supply disruptions, this year’s record storm season makes healthcare facilities more vulnerable to storm damage as well. In the worst-case scenario, power outages, flooding, or structural damage resulting from storms can force hospitals to evacuate or relocate patients, putting their health and safety at risk.?

Healthcare facilities in coastal regions are facing the brunt of the risk from rising sea levels, which intensify the damage potential even from weaker storms. This is forcing many healthcare facilities to implement costly infrastructure upgrades to withstand future storms.?

Finally, severe weather events can also be very deadly. When healthcare is delayed or disrupted in these scenarios, the result can be even higher casualties. For example, when Hurricane Maria struck Puerto Rico in 2018, a report found that one-third of the resulting deaths were caused by interrupted healthcare.

Transport and distribution challenges

The healthcare supply chain is highly dependent on both air and sea freight. With more frequent port closures—such as those across Texas, Georgia, and Florida during the 2024 storm season—there’s a greater risk of delayed or rerouted shipments.?

As discussed above, healthcare facilities often rely on “just-in-time” supply delivery with minimal buffer stock. When transport delays occur, the ripple effects can be devastating for healthcare providers.?

The complexity of healthcare distribution networks also means that disruptions in one region can have national repercussions. For instance, if a pharmaceutical manufacturing facility in Florida or a major distribution hub in Texas is shut down by a hurricane, it can lead to shortages that affect hospitals and pharmacies across the entire country.??

Additionally, healthcare logistics teams face the daunting task of tracking shipments during storms, where obtaining shipping updates can be difficult due to communication breakdowns. This is another factor that increases patient risk, especially when they’re expecting life-saving medications.??

Adapting to severe weather

In response to these growing risks, the healthcare supply chain sector is forced to adopt proactive measures to build resilience.?

One key adaptation is digitization, which allows healthcare organizations to better monitor and anticipate disruptions in real-time. For example, advanced analytics and predictive modeling can help supply chain teams identify potential vulnerabilities in their network before a storm even hits.?

Additionally, hospitals and healthcare providers are evaluating methods to increase buffer stock strategically. This can ensure that they have sufficient supplies of high-demand products like medications and PPE in times of crisis.??

However, much like in other sectors, holding too much inventory can also harm healthcare’s bottom line. As such, healthcare facilities must plan safety stock strategically and diligently manage stockpiling to avoid waste and inefficiencies.?

Infrastructure investments are another crucial area of focus. Some hospitals, particularly those in high-risk coastal areas, are raising critical equipment above flood levels and investing in backup generators to ensure they remain operational during major storms.?

Conclusion

Much like in previous years, the 2024 hurricane season will be an ongoing challenge for the healthcare supply chain. With this year’s season ramping up much sooner than anticipated, the industry must prioritize both short-term readiness and long-term resilience.??

Disruptions caused by this record storm season prompt the need for more robust disaster preparedness strategies. This includes diversifying supply sources, investing in infrastructure upgrades, and leveraging technology to improve visibility and forecasting.?

Climate change is making storms stronger and more frequent. In response, the healthcare supply chain must evolve to keep pace. Adapting will help ensure continuity during storm seasons and safeguard patient’s lives in the process.?

Read the article on our website at https://getvpl.com/what-this-years-record-storm-season-means-for-the-healthcare-supply-chain/.

About VPL

We modernize clinical supply chains to support healthier patients. Our technology-driven solutions and consultative customer experience empower health systems and outpatient pharmacies to build smarter, more resilient supply chains. With over 700 hospitals and a 97 percent customer retention rate, we’re trusted to deliver transparency, cost savings, and peace of mind.?