Supply Chain Problems Hitting Hospitals Near You

Yves Smith reports that Supply Chain Problems Hitting Hospitals Near You.

Smith argues that cost-cutting by drug companies have put public-health at risk by reducing inventory costs and keeping demand high:

The reason that it might seem OK to squeeze hospitals is precisely that it’s hard to point a finger at the drug companies. But notice the comment that these shortages can affect people in ICUs. It’s not hard to imagine a hospital having to ration limited supplies, say if some sort of disaster (big explosion, natural disaster) led hospitals in an area to have a flood of emergency room patients.

This looks like a case where the invisible hand of the market leads to a decrease in the well-being of the community.