Survey: Hospitals Brace for Proposed Pharmaceutical Tariffs

On July 9, the market research firm Black Book Research released report findings on a recent quick survey about how hospitals are reacting to the proposed 200 percent tariffs on pharmaceutical imports. The findings show that health systems are preparing themselves. “Hospital leaders are rapidly deploying mitigation strategies to address what could become one of the most disruptive cost shocks in recent healthcare history.”

U.S. hospital supply chain leaders are rapidly working to reduce reliance on foreign pharmaceuticals, Black Book Research noted. Fifty-eight percent of supply chain leaders are actively securing new contracts with domestic drug suppliers, while 79 percent are stockpiling medications. Forty-nine percent reported immediate readiness to expand warehousing.

Furthermore, Black Book Research stated that C-suite leaders are preparing for significant budget shocks. Ninety percent are planning to switch formularies to lower-cost options, including off-patent medications.

However, despite the urgency surrounding the proposed pharmaceutical import tariffs, the Black Book flash survey revealed that many hospitals are less prepared than current headlines suggest. “The majority of respondents report significant gaps in readiness, with many still in the early stages of assessing potential impacts and developing actionable strategies.”

"These survey results clearly illustrate the urgency and severity of the potential impact. Leaders are not taking chances with patient access or fiscal health," said Doug Brown, Black Book Research founder, in a statement.

The survey gathered insight from 100 healthcare leaders, including 42 hospital administrators, 30 pharmacy department executives, and 28 materials management executives across the U.S.