The View | In the dash for medical gear amid the coronavirus, the US must realise it’s a seller’s market in China now
- In China, factories are running almost non-stop to supply a flood of orders for medical gear. Yet, US hospitals still insist on rigid procurement practices. They need to accept that it’s a seller’s market and recalibrate their expectations
The reality of the situation is that it is a pure seller’s market and the factories have all the negotiating power over payment terms, due diligence requirements, production lead times and delivery schedules. This is difficult for most hospital administrators and purchasing agents to accept, and many continue to proceed cautiously.
Many agents representing US hospitals I have spoken to convey a sense of urgency and concern about supply shortages, but they are still adamant about: obtaining product samples (which takes weeks), reviewing a company’s financial statements, conducting video interviews with the company’s management, going on factory tours, and obtaining “proof of life” videos of the exact moment their goods are boxed up – as if in a hostage negotiation.
