The disasters brought on by Hurricane Helene have added to the already dire scarcity of crucial intravenous fluids in the United States, leaving healthcare institutions on the brink. Interestingly enough, the Biden administration decided the most suitable course of action would be to resort to the longstanding and rarely used Defense Production Act, a wartime strategy used to fast track recovery. One can’t help but question the efficacy and suitability of such a drastic and historical move.
As the hurricane ravaged western North Carolina, Baxter International’s production site in North Cove, the topmost producer of IV fluids and dialysis solutions in the US, bore a significant brunt. The storm’s aftereffects were so severe that the site had to shut down for a period. The distribution of goods from the site has since resumed, however, in a highly restricted capacity.
Previously, Baxter has increased its order capacity to roughly 60% of the usual amount for some much-needed IV fluids, though this hasn’t eased the burden significantly. Makes you wonder, doesn’t it? How is it that one storm can set off such a drastic ripple effect in an industry as critical as healthcare? It’s almost as if the administration wasn’t adequately prepared for such emergencies.
Unsurprisingly, the dearth in Baxter’s normal supply has been noticeable. The Food and Drug Administration has brought attention to multiple shortages, and clinics have been forced to ration their supplies. Disturbingly, even surgical procedures have been put off as the nation’s supply chain is still reeling from the impact of the storm.
Even the Centers for Disease Control and Prevention could not be silent about the shortages. The federal agency has issued a health advisory, cautioning healthcare providers about the impact of supply disruption on patient care. It’s almost comical that things have gotten to a point where the government is essentially saying, ‘we’re low on crucial healthcare supplies, good luck out there.’
In an act of apparent desperation, the FDA announced that they would allow the import of products from five non-US facilities to alleviate the shortfall. Biden and Harris’s administration appear to think outsourcing critical health products is a sustainable solution. They seem to lack the foresight to bolster domestic production capacity.
Simultaneously, other American manufacturers, like B Braun Medical and ICU Medical, are trying to boost production, in an apparent scramble to bridge the supply gap. Baxter’s North Cove facility has historically fulfilled around 60% of hospital demands for IV fluids, and its production interruption highlights the depth of the crisis.
Interestingly, the Department of Health and Human Services has invoked the Defense Production Act to assist Baxter in obtaining cleaning materials and reconstructive resources. According to the statute, Baxter will have priority access to resources and materials required for refurbishment and subsequent production restart. Quite a unique strategy from the government to cope with a health crisis.
The Korean War in 1950 yielded the Defense Production Act. The Act empowers the government, particularly the president, with the authority to guide resources for industrial production in emergencies. It was used during the COVID-19 pandemic and Hurricane Maria in 2017, both scenarios where it seems like the administration was trying to cover up its lack of proper planning.
Baxter’s comments on the situation express some degree of optimism, so to speak, as they cite ‘good progress on site cleanup and remediation’ at the North Carolina location. Ah yes, progress – that’s exactly what one hopes for when they’re waiting for a critical healthcare procedure.
Current priorities include completing deep cleaning of the facility, checking the status of all equipment and production lines. Surely we could have put in measures to prevent reaching such a dire state rather than scrambling to restore the status quo.
Despite the visible push to rectify the situation, complete normalization of the production processes at Baxter might not be immediate. It’s predicted to occur in phases, with no definitive timeline when production levels will revert to normal. Meanwhile, there’s no denying the impact this disruption has had on the healthcare sector.
This entire fiasco highlighted the vulnerable spots within the broader U.S. supply chain. It should be noted that the United States recorded unmatched levels of active drug shortages in the early period of 2024, according to information from the American Society of Health-System Pharmacists and the University of Utah Drug Information Service. Despite minor improvements in recent months, persistent shortages have been the norm, making one question the capabilities of the current administration.