On September 27, 2024, Hurricane Helene made landfall as a Category 4 storm and swept through the United States from Florida to North Carolina and Tennessee. Western North Carolina is not generally affected by hurricanes, but this storm caused unprecedented disaster in the area, including impacts on major medical device manufacturing sites. In fact, Baxter’s largest manufacturing site in North Cove, North Carolina closed due to storm damage. This had a major impact on the medical supply chain, as this site produces 60% of the national IV fluid and peritoneal dialysis supply. Efforts were taken to mitigate the impacts of the storm through Baxter’s hurricane preparedness plan, but even with these efforts, the power of the storm caused substantial damage.

Impact of Hurricane Helene on the Medical Supply Chain 

The effects of Baxter’s manufacturing site closure has sent a ripple through the healthcare industry. Baxter has announced updated IV solutions allocations to ensure that all hospitals and healthcare facilities can access the product. Customers and distributors can currently receive 60% allocations based on historical purchases, while children’s hospitals will receive 100% of needed IV solutions and nutrition products as of October 9, 2024. These allocations require healthcare providers to conserve high-demand products, resulting in some emergency departments using IV fluids at half the rate of pre-hurricane levels. For example, cases of dehydration are being treated with Gatorade instead of using IV fluids when possible. Another effect on patient health is that hospitals have deferred some elective procedures to conserve the products.  

Since the hurricane, some products manufactured at Baxter’s North Cove site have been added to the FDA parenteral drug shortage list, including Dextrose IV Solution, Lactated Ringers IV Solution, and Peritoneal Dialysis Solution. Baxter received support from federal, state, and local agencies to mitigate the effect of the site closure and work to reopen the facility. The FDA has issued emergency authorization to extend the shelf life of certain products manufactured before the end of September 2024 and to temporarily import products from Baxter’s international manufacturing sites, leading to the recent increases in product allocation. Baxter is working with the North Carolina Department of Transportation as well as federal and local agencies to help build temporary bridges to aid in product distribution, the first of which has transported more than 825 truckloads of product.  

Other companies are increasing IV fluid production to alleviate the effects of the site closure. B. Braun, for example, plans to increase production in their Daytona Beach, Florida and Irvine, California locations. Although B. Braun was not affected by Hurricane Helene, Hurricane Milton’s path went through Daytona Beach. B. Braun and federal agencies moved finished product to a safe location for the duration of the storm, and product is now able to be returned to the distribution site. Fresenius Medical Care is also increasing supply of these highly demanded products since the hurricane. 

In addition to the storms’ effects on the manufacturing facilities, many people in Florida and Western North Carolina are experiencing disruptions to their lives including road closures, loss of power, and damage to their homes. Fortunately, Baxter had evacuation plans to ensure the safety of their staff, and all have been accounted for since the storm. North Cove staff members have since returned to work alongside remediation teams, though many employees have been personally affected by the storm. Baxter continues to support its employees by offering support centers and creating a Disaster Relief Fund, though many skilled workers may be unable to work, potentially leading to further supply chain impacts. Road closures will continue to be a significant hurdle when it comes to staffing capabilities, which can prevent the return to full production capacity.  

Despite recent setbacks in manufacturing production due to this unprecedented natural disaster, Baxter, B. Braun, Fresenius Medical Care, and government agencies are working tirelessly to reduce the impact of both Hurricane Helene and Milton on patient outcomes. By increasing production at unaffected manufacturing sites, importing products, and repairing the North Cove facility, the medical product supply will be recovered. 

Looking Ahead 

Thanks to the hard-working Baxter leadership team and employees, remediation team, and government agencies, Baxter has restarted manufacturing operations, giving hope that the shortage will be resolved. Restoring physical access to the site via a temporary bridge as well as redirecting the global product supply were both integral steps in reducing the effect of the shortage on healthcare providers and patients. Although North Cove, North Carolina is not typically affected by hurricanes, the disaster recovery plan allowed leaders to take action to reduce the impact on the healthcare industry. 

Unexpected catastrophic events that affect supply chains can occur at any moment for any reason, such as the Baltimore Bridge Collapse and the Ningbo Port Explosion. To prevent supply chain impact in the future, operations leaders must reevaluate their manufacturing and distribution operations. Companies with leaner supply chains may be more likely to be impacted by these unexpected events, and it’s important to reassess their disaster recovery plans that will offset the impact of unexpected disruptions. 

Does your company have a disaster recovery or business continuity plan? What might you do in this situation to prevent medical supply disruption? When was the last time you reassessed and audited your disaster recovery plan? If you are looking for help, get in touch with our supply chain and quality + compliance experts today. 

Contributions from Lilly Saiontz