Supply chain problems may last through 2023; Healthcare spending reached over $4T in 2020; Baxter acquires Hillrom for $12.5B; plus Jobs!

December 17, 2021

Hello NAW Subscribers -

Happy Holidays and I hope you enjoy this issue of National Accounts Weekly!

Sincerely,

John Pritchard

President of ANAE

Publisher of The Journal of Healthcare Contracting

Health systems plan infrastructure for drone deliveries

The use of UAS (Unmanned Aviation Systems) for commercial medical transport in the U.S. is on the verge of taking off. Today in the U.S., Matternet is already working with health systems to operate reliable drone networks for critical medical deliveries.

As supply chain executives build or expand their distribution brick and mortar infrastructure, what do they need to take into consideration to accommodate drone deliveries? Medical deliveries by drones will typically fall into two categories:

What does the price of pickles have in common with today's healthcare supply chain?

By John Strong

Access Strategy Partners Inc.

In this season of reflection, it seems appropriate to assess how the healthcare supply chain has changed during the past 20 months of global pandemic. Folks seem to have many villains they like to point to, but what we have experienced is really a reflection of many different economic and supply chain forces at work.

About 10 years ago, I had occasions where I would take the Amtrak Acela between Philadelphia and New York City. Month after month I couldn’t help but notice out the train window what offshoring of industries, jobs and hope had done to a wide swath of northeast Philadelphia shortly after we left Union Station. For several miles the train passed through neighborhoods with ghosts of factories and stores that had undoubtedly thrived in the last century—but were no more. It spoke volumes about the intertwined nature of our economy.

Supply chain problems may last through 2023, Intel CEO says

While the supply chain problems rippling across the U.S. economy are improving for some companies, long-term fixes might take much longer, the heads of Intel Corp., Wayfair Inc., and Accenture PLC said at The Wall Street Journal CEO Council Summit this month.

Intel CEO Patrick Gelsinger said he expects supply-chain issues and semiconductor shortage to last through 2023, partly because it takes three years to build a new factory.

Health systems suspend vaccine mandate after CMS suspends ruling

CMS in a December memorandum suspended implementation and enforcement of its COVID-19 vaccination mandate for healthcare workers after judges in Missouri and Louisiana issued preliminary injunctions temporarily halting the start of the COVID-19 vaccination mandate.

One of Florida’s biggest hospital systems has ended all vaccine mandates

Advent Health will no longer require its 83,000 employees to be vaccinated against COVID-19.

U.S. health spending rose to over $4 trillion in 2020 amid pandemic response

The U.S. spent more than $4 trillion on healthcare for the first time in 2020, as government spending in response to COVID-19 drove higher growth in health expenditures, The Hill reports.

A release from the Office of the Actuary at CMS found U.S. healthcare spending increased 9.7% in 2020 to $4.1 trillion, or $12,530 per person.

That growth rate is significantly higher than the roughly 5% growth in health spending in recent years.

Baxter completes $12.5B acquisition of Hillrom

Baxter International Inc. has completed its acquisition of Hillrom. Baxter paid $156.00 in cash for each outstanding share of Hillrom common stock for a purchase price of $10.5 billion (based on Hillrom share counts at closing). Including the assumption of Hillrom’s outstanding debt obligations, the enterprise value of the transaction is approximately $12.5 billion.

Owens & Minor to build medical distribution and logistics facility in partnership with WVU Medicine

The West Virginia University Health System (WVU Medicine) announced a new long-term medical distribution partnership with Owens & Minor, Inc. (Richmond, VA).

Through the partnership, the organizations are working with the state of West Virginia on site selection for a new medical distribution and logistics facility for healthcare products preparedness and supply that will be managed by Owens & Minor.

The new facility is expected to create more than 100 new jobs within West Virginia when fully operational and will support hospitals throughout the WVU Medicine network.

5 reasons to use webinars in healthcare marketing

Do you want your marketing strategies to keep up with the times? Here are five reasons you should use webinars in healthcare marketing to reach more of your audience for a more significant impact.

About 42% of marketers plan to use webinars this year, with 83% saying webinars are an effective marketing strategy.

Pfizer invests $68.5M in new facility to further advance gene therapy capabilities

Pfizer Inc. announced the opening of a new, state-of-the-art clinical manufacturing facility in Durham, North Carolina. The facility expands Pfizer’s end-to-end capabilities in gene therapy and builds on the company’s existing footprint in North Carolina, which includes more than 3,600 employees across sites in the state.

The 85,500 square foot Durham facility will be home to Pfizer’s BioTherapeutics Pharmaceutical Sciences Group, which is responsible for the manufacturing and analytical release of clinical supplies for Pfizer’s gene therapy and biologics portfolio. The facility is expected to create more than 50 new jobs in the coming years, in addition to the approximately 40 employees who will relocate from Pfizer’s site in Chapel Hill, North Carolina.

Cleveland Clinic partners with city for $52.8M grocery, apartment mix addressing social determinants of health

Cleveland Clinic, The City of Cleveland, Meijer, Fairfax Renaissance Development Corporation, and Fairmount Properties broke ground today on a new grocery market and apartment complex in the Fairfax neighborhood of Cleveland.

As part of the $500 million Cleveland Innovation District, the new Fairfax Market mixed-use project will be located on the corner of East 105th Street and Cedar Avenue. The $52.8 million development will include a 40,000-square-foot grocery market opening by Meijer and 196 apartment units.

Acadia Healthcare, SCL Health form JV to build 144-bed facility in Denver

Acadia Healthcare Company, Inc. (Franklin, TN) announced it has formed a joint venture with SCL Health (Broomfield, CO) through which the organizations will build a new 144-bed facility in the Denver area.

7 best strategies for digital advertising in healthcare

Digital advertising in healthcare is how your manufacturing company reaches more leads through online avenues. Examples of digital avenues include paid ads, content marketing, and social media.

On average, for every $1 you invest in advertising, you will receive $8 in profit. However, you don’t have to pay for all types of advertising.

Senators take aim at fraudsters flooding the market with fake masks

Two senators are taking aim at the widespread issue of fake and ineffective masks flooding the U.S. market, reports ABC News.

A new bill announced Thursday will grant the FDA more authority to enforce and punish counterfeiters in the mask industry. The bipartisan effort is led by Sens. Chris Murphy of Connecticut, a Democrat, and Mike Braun of Indiana, a Republican.