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Chaos in the medical supply market

According to the Washington Post, the Trump administration simply has no idea what the government is supposed to do in a crisis: coordination and distribution. They think that because companies are coming forward “offering” to help manufacture needed goods that they have no need to be further involved.

But it’s clear that there is some price gouging going on, a bidding war among states and localities and general chaos in “the market” since nobody knows what products to prioritize or where to send it. That’s what the government’s supposed to do. It’s why the Defense Production Act was passed in the first place:

A mad scramble for masks, gowns and ventilators is pitting states against each other and driving up prices. Some hard-hit parts of the country are receiving fresh supplies of N95 masks, but others are still out of stock. Hospitals are requesting donations of masks and gloves from construction companies, nail salons and tattoo parlors, and considering using ventilators designed for large animals because they cannot find the kind made for people.

The market for medical supplies has descended into chaos, according to state officials and health-care leaders. They are begging the federal government to use a wartime law to bring order and ensure the United States has the gear it needs to battle the coronavirus. So far, the Trump administration has declined.

“I can’t find any more equipment. It’s not a question of money,” said New York Gov. Andrew M. Cuomo, whose state is battling the nation’s worst outbreak. “We need the federal help and we need the federal help now.”AD

At best, Cuomo said, his team has secured enough protective gear for health workers to last a few weeks. It’s been unable to buy most of the 30,000 ventilators it estimates it will need to keep hospitalized patients breathing at the peak of the crisis, he said.New York’s Cuomo urges Trump to use Defense Production ActAmid the coronavirus pandemic, New York Gov. Andrew M. Cuomo said March 22 that President Trump should “order factories to manufacture” medical equipment. (New York state)

His pleas are echoed by others, including the American Medical Association, Illinois Gov. JB Pritzker and Democratic presidential candidates Sen. Bernie Sanders (I-Vt.) and Joe Biden, who have called on the Trump administration to use the Defense Production Act to order companies to mass produce medical supplies. The law, enacted during the Korean War, allows the government to require companies to manufacture certain goods and to pay them for it.

Although governors and hospital leaders welcome the many U.S. companies stepping forward to make masks and ventilators, they fear the voluntary efforts will be too scattershot without federal coordination.AD

“When we went to war, we didn’t say, any company out there want to build a battleship? Who wants to build a battleship?” Cuomo said.

President Trump and his trade adviser, Peter Navarro, have repeatedly said they don’t need to force companies to produce under the Defense Production Act because so many manufacturers are volunteering to make medical supplies. Trump seemed to acknowledge the chaos on Tuesday, however, calling the world market for masks and ventilators “crazy” in a tweet, adding that it was “not easy” to acquire them.

But he also tweeted that he hasn’t had to use the Defense Production Act “because no one has said NO! Millions of masks coming as back up to States.” In a briefing Tuesday evening, Trump added: “Companies are heeding our call to produce medical equipment and supplies because they know that we will not hesitate to invoke the DPA in order to get them to do what they have to do. It’s called leverage.”

Trump put that China hawk fringe-dweller Peter Navarro in charge of this and he insists that everything is going great.

It . Is. Not.

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