Identifying Strategies to Improve the Supply Chain Function during Crises

Needs Analysis for Change: Supply and Demand in Healthcare

Today, procurement professionals are struggling to meet the growing and changing demands of a rapidly changing population that is confronted with the lingering effects of the COVID-19 pandemic as well as a host of other existential healthcare threats. It is also reasonable to suggest that more affluent healthcare consumers have been able to weather this pandemic as well as other health-related challenges more effectively than their less fortunate counterparts, a supposition that is supported by a growing body of research concerning supply and demand constraints in healthcare settings. The purpose of this paper is to provide a needs analysis for change in supply and demand practices in healthcare settings, including the rationale in support of the selection of this topic and a discussion concerning recent scholarly analyses that highlight the disparities that result from constraints in supply and demand in healthcare settings.

Summarize your chosen economic issue and its impact on your work, organization, colleagues, and community.

As noted previously, the economic issue in healthcare selected for this course is the

challenge of supply and demand in health care environments in general and the disparity between

patient needs and resource availability in particular. This issue was chosen due to its widespread impact on healthcare outcomes and its relevance to current trends in health care, such as the increasing demand for services against a backdrop of profound resource constraints. The COVID-19 pandemic in particular has exacerbated these challenges, creating an urgent necessity for efficient resource allocation and enhanced access to healthcare services. This issue directly impacts my work as a healthcare professional, as well as the work of my colleagues and our organization, which frequently grapples with resource constraints such as staffing shortfalls and inadequate medical supplies.

Reiterate your rationale for pursuing this issue, as well as the gap contributing to it that you identified in your previous assessment.

As also noted previously, this issue was chosen due to its widespread impact on healthcare outcomes among underserved communities and its relevance to current trends in health care, such as the increasing demand for services amidst a backdrop of resource constraints.

Identify any socioeconomic or diversity disparities that exist with how supply and demand issues impact any particular groups or populations.

The COVID-19 pandemic placed unprecedented strain on global supply chains, causing significant delays and disruptions that adversely affected the distribution of crucial medical supplies and equipment to those in dire need. As the virus rapidly spread across the world, demand for personal protective equipment (PPE), ventilators, and other vital resources skyrocketed, overwhelming existing supply networks. In addition, lockdowns and transportation restrictions implemented to curb the spread of the virus led to widespread bottlenecks and cargo backlogs at major ports and airports. These bottlenecks, coupled with factory closures and labor shortages, resulted in severe shortages of critical medical supplies in many regions. Healthcare facilities, particularly in developing nations, faced acute shortages of masks, gowns, and other PPE, putting frontline workers at heightened risk of contracting the virus (Shurden et al., 2022).

Furthermore, the lack of a coordinated global response and export restrictions imposed by some countries exacerbated the supply chain disruptions. Nations scrambled to secure limited supplies, leading to bidding wars and price gouging, making it increasingly difficult for poorer nations and underfunded healthcare systems to procure essential medical equipment. Delays in the distribution of COVID-19 test kits, vaccines, and therapeutic treatments also hindered efforts to control the virus's spread and save lives. These supply chain challenges highlighted the vulnerability of the global healthcare system and the need for more robust and resilient supply networks. As the world continues to grapple with the lingering effects of the pandemic, addressing these supply chain vulnerabilities remains a crucial priority to ensure better preparedness for future crises of all ilk.

Use at least one piece of evidence to support this disparity (public health data, aggregated data from an organization, or other scholarly resources).

The disparities in the provision of healthcare services to marginalized communities was made abundantly clear during the height of the COVID-19 pandemic. For instance, according to Stok et al. (2021), “The enormous public health burdens of the COVID-19 pandemic are not distributed equally. Inequalities are noticeable along socio-economic and socio-cultural fault lines” (p. 6339). Moreover, the circumstances in which individuals are born, grow, live, work, and age, shaped by disparities in power, wealth, and resources, significantly influence the prevalence, severity, and negative impacts of COVID-19 infections.

These socioeconomic determinants of health have led to stark inequalities in the burden of the pandemic, both within and across communities, nations, and global regions but most especially among rural populations that already lack access to healthcare services. The disproportionate effects of COVID-19 on marginalized populations raise critical questions about solidarity, social justice, and the need to address the underlying systemic factors that perpetuate these inequities (Stok et al., 2022).

Explain the findings of evidence-based or scholarly sources regarding the need to address your chosen issue and pursue potential change or implementation plans.

Ceteris paribus, the demand for life-saving vaccines during times of pandemic is shared equally among consumers irrespective of the socioeconomic condition or place of residence. Indeed, people of all walks of life and station typically share some degree of self-preservation for themselves and their loved ones. Therefore, the fundamental issue that relates to the disparities that are involved in any supply and demand analysis of healthcare concerns the manner in which already marginalized populations are denied the same level of care as more affluent consumers (Setyowati & Amalina, 2024). Likewise – and notwithstanding their “essential worker” designations, research has shown that supply and demand issues in healthcare have also adversely affected lower income consumers across the board (Woodside, 2022). In this regard, a study by Kantamneni (2020) found that, “Workers most likely to be affected by unemployment due to COVID-19 are less educated, have lower economic resources, and lower levels of liquid assets. In a nutshell, they are the most vulnerable of the U.S. population to be laid off without income” (p. 108439).

Not surprisingly, these disparities have adversely affected the lives of less affluent healthcare consumers in myriad ways that are virtually unknown and unfelt among more affluent consumers. For instance, a study by Thacker-King (2023) found that, “Data signifies the persistence of an educational gap between affluent students, minorities, and those living at or below the poverty or extreme poverty levels. These educational gaps are proliferated due to COVID-19” (p. 229). Indeed, alarming inequities in reading, math and other vitally important academic areas have emerged between affluent and marginalized populations that threaten the potential earning power of an entire generation (Thacker-King, 2023). Taken together, these disparities in the provision of healthcare services and supplies underscore the importance of identifying and implementing appropriate strategies to improve the functioning of the global and domestic supply chains during periods of emergent crises.

Explain the predicted outcomes and opportunities for growth as the result of the proposed change or implementation plan.

The valuable lessons learned from supply chain disruptions during the COVID-19 pandemic must be applied to future responses. In this regard, the White House’s Council of Economic Advisors recommends that, “Resilience can be achieved through better data on the structure of supply chains, investments in redundancy, greater ability to substitute between inputs, and improved communication across the supply chain” (Supply chain resilience, 2024). Likewise, Shih (2020) also calls for more resilience in the nation’s supply chain to respond more effectively to unforeseen disruptions. Certainly, these are important steps towards improving the nation’s response to healthcare crises, but they only represent part of the solution which remains a work in progress.