Premier Inc. Survey

Alternate Site Providers Report Increased PPE Needs but Face Challenges with Traditional Distribution Channels

Premier Inc. (NASDAQ: PINC), a leading healthcare improvement company, today released survey results finding that the majority of alternate site providers, including senior living facilities, physician/medical offices, pharmacies and surgical centers, report a more than 50 percent increase in personal protective equipment (PPE) needs since the COVID-19 outbreak.

At the same time, securing PPE is still a challenge for alternate site providers. The majority of respondents are still unable to obtain PPE or disinfecting and sanitizing products, which continue to be in high demand. Most (83 percent) reported not having their PPE needs met by their traditional medical-surgical distributors, with a significant percentage looking to online retailers and other channels for product.

In order to reopen, many of these providers need to have an excess supply of these items on hand to avoid shortages later. The top items these providers have trouble securing are:

1. Isolation gowns
2. N95 masks
3. Disinfecting products (cleaners, sprays, etc.)
4. Hand sanitizer
5. Surgical masks

Ninety-five percent require at least some PPE for every person in their facility. As a result, nearly three-quarters of respondents (72 percent) have increased their PPE budgets by 50 percent, and nearly half (47 percent) have increased their spend by 100 percent or more.

“It is clear that traditional medical-surgical distributors are challenged to meet the PPE demands for alternate site providers,” said John P. Sganga, Senior Vice President of Alternate Site Programs at Premier. “Premier has implemented programs to direct these healthcare providers to alternative suppliers who are able to help meet their needs for PPE and other critical supplies. This includes our e-Commerce platform, stockd. It is critical that these facilities are not left defenseless in the future.”

Alternate site providers – which include nursing homes and long-term care facilities that account for 40 percent of COVID-19 deaths – have struggled to secure PPE and other critical products due to allocation, a process that restricts ordering when demand for a particular product spikes. Allocations are typically set to match the customer’s historic purchase volume and are meant to protect the supply chain and prevent unnecessary hoarding. A downside of allocation is that it may limit the amounts healthcare providers can buy, even if they have legitimate reasons for larger orders. Alternate site providers do not typically have a purchasing history for PPE and have a difficult time securing product on allocation. Premier launched stockd to help organize the market for these providers and believes that a fundamental shift in the Strategic National Stockpile’s approach to product distribution is needed to more wholly meet providers’ needs going forward.