Biden administration invokes Defense Production Act amid IV shortage caused by hurricane

The Biden administration has enacted the Defense Production Act after the Food and Drug Administration said that Hurricane Helene caused a shortage of IV fluids.

IV fluid maker Baxter reported in late September that its plant in North Cove, North Carolina, was impacted by the rain from Helene, causing damage to inventory and raw materials. There was also limited access to the plant as nearby roadways leading to the plant collapsed.

In response, the United States Department of Health and Human Services invoked the Defense Production Act to help Baxter obtain materials needed to clean and reopen the facility. HHS also said it would expedite inspections to help Baxter reopen its North Cove facility.

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Baxter says that it has not identified any structural damage to the plant, and that it is undergoing remediation.

Additionally, the Food and Drug Administration is allowing Baxter to temporarily import 19 different IV solution and dialysis products from five different international manufacturing plans to bolster domestic supply. The facilities are located in Canada, China, Ireland and the United Kingdom.

"These importation authorizations and the ability to reallocate capacity from other Baxter facilities enabled us on Oct. 9 to increase U.S. allocation levels of our highest demand IV fluids for direct customers from 40% to 60%, and for distributors from 10% to 60%," Baxter said.

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The American Hospital Association welcomed the announcement that Baxter would begin importing fluids.

“Baxter’s announcement is welcome news for patients and health care providers,” AHA President Rick Pollack said in a statement. “We appreciate the administration’s collaboration with us on this and their responses to date to ensure the needs of hospitals and patients are met. While we know the recovery from this historic storm will take time, we are grateful for the ongoing commitment to mitigate these supply chain disruptions and ensure access to care for patients.”

Baxter said that it hopes that to reopen its North Cove facility in phases by the end of the year, although it could not say when it would be able to ramp production back to pre-hurricane levels.

IV fluids are commonly used in hospitals to prevent or treat dehydration and electrolyte imbalances.

"IV fluids are specially formulated liquids that are injected into a vein to prevent or treat dehydration. Intravenous rehydration is a simple and safe procedure used in people who are sick, injured, dehydrated from exercise or heat, or undergoing surgery," the Cleveland Clinic said.