HHS expecting ‘limited’ impact on drug supply chain from port strike

The Department of Health and Human Services (HHS) is not anticipating a major impact on the availability of health care products stemming from the port strike that began this week, with current assessments foreseeing a “limited” effect.

Members of the International Longshoremen’s Association (ILA) went on strike Tuesday after bargaining talks with the U.S. Maritime Alliance failed to reach an agreement, with the issue of increased compensation being a particular sticking point.

The strike has the potential to drastically shake up the U.S. economy, potentially costing as much as $5 billion per day.

But after meeting with “trade associations, distributors, manufacturers, and other stakeholders,” the HHS said it isn’t expecting a major effect on medical supply chains.

“Current preliminary assessments indicate immediate impacts across medicines, medical devices, and infant formula for consumers, parents, and caregivers should be limited. The Administration is taking action to monitor and address potential impacts on consumers of labor disputes at East Coast and Gulf Coast ports,” HHS said in a statement.

“ASPR [Administration for Strategic Preparedness and Response] and FDA [Food and Drug Administration] have and will continue working closely with HHS to quickly identify potential shortages of lifesaving products impacted by a strike to determine the cause and work with manufacturers and distributors to address local, regional and national needs as they arise,” the statement continued, adding that the administration supported both parties coming back to the bargaining table “fairly and quickly.”

According to the American Hospital Association, the U.S. increasingly relies on foreign countries for medical supplies, devices and equipment, especially from China. The U.S. has imported roughly $15 billion in medical equipment this year.