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March 23, 2020 07:35 PM

Trump bans hoarding of scarce medical equipment and supplies

Michael Brady
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    Modern Healthcare is providing COVID-19 coverage for free as a public service and a show of appreciation for the frontline workers in this battle against the epidemic. To support this essential journalism, please subscribe here. 

    President Donald Trump announced Monday that he signed an executive order to prohibit the hoarding of equipment and supplies necessary to addressing the COVID-19 pandemic.

    Hand sanitizer, face masks and other personal protective equipment, or PPE, are in short supply thanks to a sudden and overwhelming increase in demand throughout the U.S. caused by the coronavirus outbreak. The Trump administration decided to take action following reports that some people have stocked up on critical equipment and supplies, which can exacerbate shortages. "We have started to see some evidence of potential hoarding and price gouging," United States Attorney General Bill Barr said.

    HHS Secretary Alex Azar can determine what essential equipment and supplies are "scarce" under the order.

    "That means it will be a crime to stockpile these items in excessive quantities," Trump said.

    The U.S. Department of Justice will work with HHS to identify potential lawbreakers. The Trump administration created a national task force to work on supply chain issues, especially hoarding and price gouging, according to Barr.

    "We're not talking about consumers or businesses stockpiling supplies for their own operations," Barr said. "But if you are sitting on a warehouse with . . . surgical masks, you will be hearing a knock on your door."

    The Defense Production Act allows the president to ban the hoarding of critical materials if those resources are "scarce" or if hoarding could threaten the supply because it's too concentrated.

     

    As the world reacts to the unpredecedented COVID-19 pandemic, Modern Healthcare is covering the virus and its impact on the healthcare industry. Our coronavirus-related stories are free to the public, and we ask that you support our journalism here.

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    • News
      • Current News
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      • Transformation
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      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
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        • West
      • Digital Edition (Web Version)
    • Opinion
      • Bold Moves
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      • From the Editor
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        • Nominate/Eligibility
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        • Healthcare Marketing Impact Awards
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        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
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      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
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