Competition among state, local governments creates bidding war for medical equipment

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Competition among state, local governments creates bidding war for medical equipment
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Health care workers are scrambling to find enough medical supplies to replenish their dwindling supply. But state and local governments are vying to buy the same equipment—creating a competitive market that drives up prices for all.

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"A system that's based on state and local governments looking out for themselves and competing with other state and local governments across the nation isn't sustainable,” said John Cohen, an ABC News contributor and former acting Undersecretary of the Department of Homeland Security, “and if left to continue, we'll certainly exacerbate the public health crisis we're facing.”

A Indiana National Guardsman pushes a pallet of medical supplies to be delivered, March 26, 2020, in Indianapolis.

Cuomo called on the federal government - or even states themselves - to get organized and eliminate private market competition. Governor Andrew Cuomo speaks during a press conference at the field hospital site at the Javits Center, March 30, 2020, in New York.The Trump administration does not appear to have responded to this push for centralized purchasing from Cuomo and others, but the federal agencies are providing some relief. The U.S. Department of Health & Human Services announced last month that it would purchase 500 million N95 respirators over the next 18 months for the Strategic National Stockpile .

But President Trump also acknowledged this week that the Strategic National Stockpile is nearly depleted, telling reporters that supplies are being sent directly to hospitals instead of through states.

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