On March 18, the president issued an executive order invoking the Defense Production Act. The order designates certain “health and medical resources” as scarce and critical materials essential to the national defense, and grants the Secretary of Health and Human Services significant power over their distribution and allocation in the civilian market. Under the order, companies may soon be called upon to fill mandatory, prioritized government orders for medical supplies and services, even if they do not normally contract with the government.
Companies operating in the health and medical industries should familiarize themselves with the Defense Priorities and Allocations System (DPAS), and watch for further updates from the Secretary of Health and Human Services. Read More