Healthcare Supply Chain Costs Rise as Tariffs Mount

Tariffs are driving up healthcare supply chain costs across medical supplies and key indirect categories such as IT, hardware, facilities, and maintenance, repair, and operations (MRO), according to an updated LogicSource report.

The 2025 Tariff Impact Analysis examines how increasing tariffs may influence healthcare systems, procurement strategies, and overall resilience. The updated report breaks down every major tariff action and notice issued since mid-August. LogicSource observed an average cost increase of about 4% across its portfolio, with medical supplies among the most affected.

Many products face multiple layers of tariffs, including reciprocal measures and Section 232 duties, which compound cost escalation. Because many healthcare systems set their 2025 budgets before the full extent of these tariff hikes was known, procurement teams are now managing unplanned financial pressure. If organizations cannot absorb or negotiate these increases, they may need to pass costs on or reduce spending elsewhere.

Suppliers are also feeling margin pressure. Some are beginning to pass tariff-related increases directly to buyers, while others have been absorbing them. LogicSource expects more suppliers to shift toward passing through these costs. In this environment, negotiations grow more complex, prompting procurement teams to scrutinize tariff-driven price changes, request greater cost transparency, and consider fixed-price agreements.

Diversifying sourcing is becoming more important as well. Healthcare organizations may need to qualify suppliers in lower-tariff regions, shift production, or explore alternative materials and design changes to reduce reliance on tariff-heavy inputs.

Longer term, ongoing tariff volatility could reshape procurement approaches, supplier relationships, and inventory strategies across the healthcare sector.