RouteGenie Shares Insights on the Impact of War on Healthcare Industry
The war in Ukraine has raged for nearly four months. Despite peace talks, no one knows when it will end. The North Atlantic Treaty Organization (NATO) goes so far as to say that the war may last for months or even years.
As of March, the World Health Organization (WHO) has identified 64 attacks on healthcare facilities in the country. WHO has declared that attacking critical infrastructures such as hospitals and clinics is a violation of international humanitarian law. Targeting such facilities deprives civilians of the healthcare they need and increases mortality rates in the area.
Prolonged war will likely not only affect Ukraine and Russia but the global healthcare industry too.
Under Siege: Ukraine’s Healthcare System
The country’s healthcare system is now under siege not only from daily attacks but also from the breakdown of infrastructures such as roads, bridges, and communication channels. Additionally, the increasing violence has made it more dangerous for essential non-combatants like hospital staff to provide the medical care needed by civilians.
The movement of medical supplies and their use are affected because of disruptions to the supply chain. In many areas, deliveries of supplies have become irregular or have altogether stopped. Many people who require check-ups, non-emergency medical transport (NEMT), and other medical services are thus finding it impossible to receive the medical attention they need.
Rising Medical Needs Yet Fewer Healthcare Providers and Facilities
The war has displaced at least seven million people. WHO warns that this increases the health risks for people suffering from chronic and non-communicable diseases.
While hospitals are receiving more patients, they have fewer people administering medical treatments and services. Other hospitals have been converted to treat the wounded, which has become essential in the war-torn country.
Some facilities in affected areas have closed, especially those that have shifted control to Russia. This means that thousands of people receive no medical treatments and have no access to medication and basic medical supplies.
Sadly, other basic needs such as food and water are also lacking with many people facing starvation amidst daily bombings and attacks.
Finally, the pandemic has made it harder for many Ukrainians to receive vaccines and booster shots.
Ukraine War and the Global Healthcare Industry
The Ukraine war isn’t only affecting the country’s healthcare industry but the global healthcare industry as well.
Here are three major ways in which the global healthcare and medical industry are feeling the effects of the ongoing war:
1. Access to Raw Materials
Observers are citing the price increase of raw materials from the region such as petroleum, which is needed in many medical equipment and products. Accessing these raw materials is now more difficult as supply chains have been disrupted and many companies have halted their production due to the war.
This could increase the price of some medical equipment and tools. Though analysts say that the price hike in medication and other supplies might not be evident now (due to medical companies following annual contracts), hospitals and other medical facilities may have no choice but to raise the prices of supplies and equipment such as medical bottles, syringes, and even medicine if the conflict continues.
2. Effects on Transportation
The global rise of natural gas and crude oil prices has made the transportation of medical supplies more challenging for many countries. Several transport lines for Russian oil have ceased operations and many countries are witnessing its effect on rising gas prices.
Many freight companies are moving out of the region to avoid the conflict, which has only made the transportation of goods and services more challenging. Observers say that there will be more supply chain disruptions and delivery backlogs as international sanctions affect logistics in the region.
The rerouting of cargo planes, trucks, and other supply vehicles will require additional oil consumption. This not only creates delays but can also potentially hike up the prices of any material shipped in and out of the area.
Care delivery systems will also be affected as NEMT providers in other countries will increase rates for all NEMT trips due to the rising price of gas. Some clients might not even consider using NEMT providers since they might not have the resources to pay for their services.
To sum up, transporting patients, supplies, and delivering medical equipment will become more expensive. For many, this is a barrier that prevents access to the most basic of healthcare.
3. Global Long-term Effects
The war in Ukraine has revealed that any regional conflict has the ability to affect the supply chain in many countries. Unfortunately, many of these detrimental effects have a tendency to linger for some time. Countries’ interdependence on each other’s imported products has made it clear that governments must prioritize and invest in local manufacturing industries.
Due to the war and the world’s reliance on Ukrainian and Russian exports, gas and neon are in short supply. Since neon is a vital component in the production of semiconductors and Ukraine is the world’s biggest supplier of it, even the IT industry and IT start-ups find themselves challenged by the war.
In addition, the situation has brought on the realization that a countrywide reliance on oil can and will create economic downturns. This is particularly true in places where oil is the main export. One such country is Germany. The Western European country is responding to the crisis by rapidly transitioning to renewable energy.
Many European countries fear that if the conflict extends to the winter of 2022, it will seriously deplete stored gas supplies, and will further increase gas prices that many already consider too high.
Finally, the war is causing food crises in many areas due to the disruption of supply chains and transport.
We now see milk, potato, and food shortages in many areas, endangering the health of many people around the world.
The World Waits and Hopes
As world leaders and the United Nations struggle to find a way to end the conflict, many people are hoping that the peace talks between Russia and Ukraine will bear fruit. But even as the world hopes, many countries are trying to find alternatives and solutions to challenges posed by the war. One of the major and critical priorities is to ensure that people will receive healthcare, food, and basic supplies even in the midst of war and conflict.
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