Why price of medical supplies is going up

The Ripple Effect of Rising Gas Prices (ARA) Gas prices are now topping $4 per gallon. There are many reasons why gasoline prices increase. Typically the cause is a drop in supply and a surge in demand; but this time around, the increase is being blamed on the declining dollar. Because oil has traditionally been sold in dollars, investors in the rest of the world can buy more of it when the dollar slides, and OPEC members are more willing to push for a higher price, knowing that the dollars they receive aren't worth as much as before. The price increase has been having a trickle-down effect on our nation's economy for some time now. Truckers are adding fuel surcharges to their bills, and retailers have reacted by raising prices on consumer goods; the airlines are cutting capacity, eliminating jobs and considering mergers; even the services industry is being adversely affected. "It seems like a viscous cycle. Every extra dollar we spend on gas is another dollar we are not spending on groceries, vacations, consumer products or health care," says Dawn Duffy of AAA Minneapolis. Speaking of health care, that's one segment of the economy being hit especially hard. It's becoming more expensive for doctors to provide patients with the treatment they need. Due in a large part to the rising cost of fuel, the cost of medical supplies like gloves, syringes and tubing made of PVC, polypropylene and other oil based products are going up. Product costs have increased 5 to 7 percent on a wide variety of product categories, with some rising as much as 15 percent since last fall.  Suppliers are now having to pass along those increases to customers. Manufacturers like Shen Wei, a Chinese company that makes exam gloves, have seen material costs increase by over 25 percent in recent months. "We are experiencing extreme increases in the cost of doing business right now," says company president Belle Chou. "Concerns for the environment, energy depletions/resources, inflation and currency valuation have all impacted us." These issues are impacting Shen Wei's customers as well, and gloves aren't the only medical supplies becoming more expensive. Surgical instruments, patient gowns, crutches, wheelchairs, even bandages are going up in price as well. "This is a very challenging time. End users need to know that we are not taking advantage of them. Businesses have not passed on all the cost factors to customers," says Chou. - ARA