Tariffs drive medical device purchasing shifts

Tariffs are impacting how hospitals purchase medical devices: ©Zimmytws - stock.adobe.com

With a wave of tariffs hitting U.S. trade, hospitals may be accelerating purchases of certain medical devices to stay ahead of expected price hikes, according to a new analysis from GlobalData.

The data and analytics firm reported that the top 20 health care facilities across 56 medical device markets spent an average of 6.7% more in April 2025 compared to March, based on its U.S. Healthcare Facility Invoicing Database. The increase wasn’t limited to a single category, suggesting broad preemptive spending likely tied to tariff concerns.

“Necessary procedures such as aspiration thrombectomy will need to continue being done, whereas elective procedures such as hip reconstruction can be delayed,” said Amy Paterson, medical analyst at GlobalData. “If prices of devices are driven up by tariffs, hospitals will either face shrinking profit margins or increase the cost to patients, and patients might not be able to afford the increased procedure costs.”

Facilities appear to be prioritizing elective devices in anticipation of higher costs. Spending on hip reconstruction devices surged 18% from March to April 2025, reversing a 3% decline in the same period last year. Likewise, knee reconstruction devices saw a 9% increase in average spend, compared to a 13% decline during the same months in 2024.

By contrast, spending on devices for necessary procedures like aspiration thrombectomy remained unchanged. Purchasing dropped 30% between March and April—matching the same decline from the previous year—indicating facilities are not stockpiling these essential items despite the tariff environment.

“GlobalData expects a continued steady purchasing of devices for necessary procedures, while purchases of devices for elective procedures like hip and knee reconstruction may slow if facilities have already purchased supply in advance,” Paterson said. “If tariffs continue, manufacturing sites could move into the US to avoid tariffs for both consumers and manufacturers.”

The long-term effects of the tariffs may reshape both supply chains and patient access to care as providers seek to adapt to a shifting economic landscape.

Medical device industry warns tariffs threaten innovation, patient care

At a Senate hearing on trade policy in mid-May, AdvaMed President and CEO Scott Whitaker warned that new tariffs on medical technologies could disrupt patient care, raise health care costs, and weaken the U.S. lead in medical innovation. Representing more than 600 companies, Whitaker described the medtech industry as a vital part of the health care system—powering hospitals, supporting home care, and employing millions across 17,000 U.S. manufacturing sites.

The Trump administration's new tariffs, aimed at reshoring manufacturing and countering unfair trade practices, affect hundreds of components used in U.S.-made devices like infusion pumps, pacemakers, and AI-assisted diagnostic tools. But Whitaker emphasized that the medtech supply chain is global and highly complex, with some products incorporating parts from over 20 countries. Unlike consumer goods, medical devices face long regulatory approval timelines that make rapid production shifts nearly impossible.

Whitaker noted that price increases caused by tariffs can't easily be passed on due to fixed-price contracts and reimbursement limits from Medicare and Medicaid, potentially driving up costs for federal programs and patients alike.

He urged Congress to adopt a “zero-for-zero” tariff model—mutual tariff elimination for medtech products—citing global norms and the humanitarian importance of uninterrupted access to lifesaving technologies. Exemptions of this kind were honored during Trump’s first term and are common in global trade policy.

Despite challenges, U.S. medtech firms continue to invest in domestic manufacturing. Whitaker concluded by calling for permanent tariff exemptions for medical technologies and recognition of their essential, humanitarian role in future trade negotiations.