- Healthcare providers are preparing for rising pharmaceutical costs in 2025, driven by specialty drug price hikes and increased GLP-1 usage.
- New tariffs on medical supplies, including syringes and gloves, could further strain healthcare supply chains and increase costs.
- Providers like HCA Healthcare are implementing strategies such as diversifying suppliers and securing fixed-price contracts to mitigate financial impact.
Healthcare providers are facing mounting concerns over rising pharmaceutical and supply chain costs in 2025, with experts pointing to inflation, increased demand for specialty drugs, and new tariffs as key contributors.
A recent report from Vizient, a healthcare performance improvement company, highlights that pharmaceutical spending is expected to rise this summer, driven by a growing market for specialty and personalized medications. These high-cost drugs already make up 54% of nationwide drug spending, and their share is expected to grow as new treatments enter the market and prices increase.
The number of specialty and complex drugs is projected to increase by 4.4% in the coming months, with higher availability and usage of glucagon-like peptide-1 (GLP-1) medications also playing a role in cost escalation.
According to the report, one in eight American adults currently use GLP-1s, and total spending on these drugs reached $57.5 billion in the first three quarters of 2024. That number could rise to $150 billion globally by 2030.
However, the primary driver of specialty drug costs will be price hikes on existing medications for oncology and autoimmune disorders, according to Steven Lucio, senior principal of insights and intelligence at Vizient.
"The main driver of specialty pharmaceutical cost will come from price increases to classic specialty drugs that treat oncology conditions and autoimmune disorders," Lucio told Healthcare Dive.
The report names Humira, Stelara, and Skyrizi—commonly used for Crohn’s disease—as among those projected to see significant price increases.
Beyond pharmaceuticals, supply chain pressures are also expected to drive up healthcare costs. The Biden administration approved an $18 billion tariff increase in May that will impact imports of enteral syringes from China, a critical component in medical care.
While the healthcare sector successfully lobbied to delay the implementation of this tariff until 2026, experts warn that providers may need to shift away from Chinese suppliers to avoid long-term cost hikes.
Additional tariffs on face masks, medical gloves, and other essential supplies took effect at the start of this year, further straining supply chains. Meanwhile, former President Donald Trump has proposed additional tariffs on imports from Canada, China, and Mexico, which could further impact the cost of medical equipment such as X-ray devices.
Healthcare organizations are already working to mitigate these financial pressures. During a recent investor call, executives from HCA Healthcare detailed efforts to bolster supply chain resiliency. CFO Mike Marks noted that the company had been diversifying suppliers for years and had secured fixed-price contracts for 2025 to manage potential tariff impacts.
Edited by Harshajit Sarmah
