Enhancing Resilience in the Healthcare Supply Chain: Lessons from IV Fluid Shortages in the Wake of Natural Disasters

The resilience of the healthcare supply chain is a crucial factor in the US’s ability to respond effectively to medical crises. This resilience is being tested, particularly in the wake of natural disasters such as hurricanes, fires, and flooding – which scientists expect to worsen in the coming decades (NCEI). Disruptions in our supply system can have immediate and severe consequences, impeding the availability of essential medical supplies such as intravenous (IV) fluids, which are critical for patient care across a wide range of medical contexts. The supply chain’s vulnerabilities became especially evident during hurricanes Maria (September 2017) and Helene (September 2024), when the shutdown of key manufacturing facilities—such as those operated by Baxter International in Puerto Rico and North Carolina—led to nationwide shortages. These events underscored how reliance on a few centralized production sites created systemic risks, making it clear that alternative strategies must be considered to bolster resilience. Scholars such as Chopra and Sodhi (2014) and Sheffi (2015) emphasize that over-concentrated supply chains are inherently fragile and may be highly susceptible to large-scale disruptions, reinforcing the necessity for diversification and redundancy. This paper seeks to examine some of the structural factors contributing to supply chain fragility in the US healthcare industry and outline strategies for fortification. Through an analysis of the impact of two recent hurricanes - Maria and Helene, we will identify key inefficiencies and vulnerabilities in current systems. The discussion will focus on institutional coordination, the role of organizational theories in understanding supply chain resilience, and insights from social network research that can offer viable models for more robust healthcare logistics. Scholars such as Tang (2006) highlight the balance between efficiency and resilience, while Craighead et al. (2007) illustrate how interconnected supply chains, though efficient, can also magnify disruptions. Additionally, we will explore policy recommendations and technological advancements that can mitigate future risks, grounding our recommendations in current research on risk management and supply chain adaptation.