By David Hewitt, Senior Vice President Sales, SpendMend
Becker’s Hospital Review recently published an article outlining seven trends that will shape hospital supply chains in the year ahead. It is a concise but powerful snapshot of the pressures building across the industry. Costs are rising, regulations are tightening, sourcing continues to shift, and the connection between supply chain, and clinical outcomes is becoming more direct. These trends are not theoretical. They reflect what is happening inside hospitals today.
From my seat, working with systems across the country, the themes Becker’s highlights mirror what supply chain, finance and clinical leaders tell us every week. The challenge is not simply that the landscape is becoming more difficult – It’s that the information hospitals need to respond effectively is often fragmented, delayed or buried. The patterns Becker’s calls out align closely with what we see in the data every day.
Below is a look at the seven trends Becker’s identified, along with context for why they matter.
The 7 Trends to Watch
- Medical supply chain expenses are expected to rise more than previously projected.
Hospitals are facing higher-than-anticipated inflation across routine supplies, med-surg commodities, implants and purchased services. Rising labor, manufacturing, and transportation costs globally are pushing supply budgets upward, often beyond what systems forecasted even a quarter ago.
- Pharmacy budgets will feel additional strain.
Pharmacy remains one of the fastest-growing cost areas for hospitals. New therapies, specialty drugs, persistent shortages, and payer shifts continue to push budget pressure upward. Many systems are experiencing pharmacy inflation at rates that significantly outpace overall revenue growth.
- A federal audit uncovered millions in improper payments.
CMS identified millions in overpayments involving DMEPOS items delivered during inpatient stays. These findings point to gaps in documentation, billing accuracy, and claim management. They also signal that federal scrutiny of reimbursement-linked supply categories will continue to intensify.
- Tariffs on foreign-manufactured medical goods are elevating costs across the sector.
Tariffs affecting goods manufactured in China and other regions are increasing acquisition costs for a wide range of medical and non-medical supplies. These changes are showing up in supplier pricing, new contracts, renewals, and budget planning for 2025–2026.
- Drug shortages could intensify amid uncertainty around additional tariffs.
Tariffs on raw materials and pharmaceutical components may exacerbate existing drug shortages. Hospitals could face more substitutions, higher-cost alternatives, and increased operational burden as manufacturers adjust sourcing and production strategies.
- Shifts in international tariff policy may alter sourcing strategies.
Manufacturers are shifting production geographies to minimize tariff exposure. While this may stabilize long-term supply, it introduces new variability in lead times, shipping costs, minimum order quantities, and supplier reliability. Hospitals must reassess sourcing risk with more frequency.
- A pending Medicare policy change could affect access to advanced wound-care materials.
CMS is considering reclassifying certain skin substitute products into non-surgical service bundles. This change would reduce reimbursement and require hospitals to re-evaluate product utilization, documentation expectations, and clinical workflows related to advanced wound care.
Final thought
These seven trends underscore what many hospital leaders already know: the pressure on supply chain is growing from every direction. Costs are rising, oversight is increasing, and sourcing is becoming more unpredictable. But the real challenge underneath it all is visibility. Hospitals cannot manage what they cannot see, and they cannot improve what they cannot measure. Fragmented data, disconnected processes, and reactive workflows leave organizations vulnerable at a time when they need steadiness and foresight more than ever.
The health systems navigating this most effectively are the ones investing in clarity in their spend, their processes, their utilization patterns, and their risks. That clarity becomes the foundation for better conversations with clinicians, stronger financial stewardship, more resilient sourcing strategies, and a more confident response to change.
For all of us who work alongside supply chain teams – this is the work that matters. It is not just about identifying where money was lost, it is about understanding why it happened and how to prevent it from happening again. It is about moving from recovery to insight, from correction to continuous improvement. In an environment defined by uncertainty, the organizations that succeed will be the ones with the clearest line of sight into their operations and the strongest commitment to using that insight to shape the future rather than react to the past.
That remains the heart of the mission: helping hospitals gain the visibility they need to protect their margins, support their teams, and deliver the care their communities rely on every day.
David Hewitt is a long-time healthcare supply chain leader who has spent his career helping hospitals improve visibility, strengthen financial performance, and make more informed operational decisions across complex spend environments.