Why US Medical Gear Reserves Are Almost Completely Depleted

Health care in the United States is often characterized by a profiteering medical-industrial complex that fails to provide adequate and affordable care for the public. Consequently, the cost-effectiveness of preparing for services that are not provided is questionable.

Production and Supply Chain Challenges

One of the primary reasons for the shortage of medical supplies is the relocation of production overseas. However, the core issue lies in the coordination failures and the use of Just In Time (JIT) inventory methods. These systems are inherently vulnerable to sudden spikes in demand, leading to critical shortages.

Market Mechanism and Panic Buying

The phenomenon of panic buying is often compared to the hoarding of toilet paper during shortages. In normal times, individuals might buy small quantities as they run low, reassured by the abundance in stores. However, during times of fear or anticipation of shortages, a synchronized demand shock occurs. Everyone starts to buy in bulk, leading to empty shelves and false shortages. This behavior is not only irrational but also exacerbates the situation.

State-Level Competition and Lack of Cooperation

Even with statewide shelter in place orders, not all states hit their peaks simultaneously. This means that some areas might have reserves, but they are unwilling to share them. Each state, and even each hospital, tries to grab as much as possible to ensure they can meet future demand. This selfish approach leads to the disappearance of supplies from the common pool.

Disappearance of National Stockpiles

National stockpiles are vanishing into private hands and being intercepted by local authorities. The chaotic distribution is further compounded by the fact that manufacturers are caught off guard, with their existing inventories low and no spare capacity to quickly ramp up production. This inability to adapt to demand shocks means that the current shortages will likely persist for some time.

Forecasting Future Supply

It's important to note that in three or four weeks, we can expect a flood of equipment and masks to hit the market. However, this influx is unlikely to address the existing irrational market dynamics, leading to continued shortages.

Conclusion

The current state of shortages in US medical supplies highlights the need for better coordination, more resilient supply chains, and a more rational market approach. Only by addressing these underlying issues can we ensure a more stable and sustainable healthcare system.