US Hospitals Face Critical IV Fluid Shortage After Baxter Facility Shuts Down Due To Hurricane Helene

The United States is facing a significant shortage of intravenous (IV) fluids, including saline and dextrose solutions, exacerbated by damage to Baxter International (NYSE:BAX) plants in North Carolina due to Hurricane Helene.

These essential fluids, already in limited supply before the hurricane, are critical for various medical treatments, such as hydration, wound cleaning, and dialysis.

The closure of Baxter’s plant, which produces about 60% of the country’s IV fluids, has intensified the scarcity, leaving hospitals struggling to maintain adequate supplies.

An NBC report noted that years before the hurricane, the U.S. was already experiencing shortages of IV fluids, according to the FDA.

Saline solution has been in short supply since 2018, sterile water since 2021, and dextrose solution since early 2022.

The hurricane worsened the situation, adding lactated Ringer’s solution and peritoneal dialysis fluids to the list of shortages.

This shortage is a critical issue as hospitals depend on these fluids for life-saving treatments, and they are challenging to produce due to high regulatory standards and the delicate sterilization process involved.

Erin Fox, senior pharmacy director at the University of Utah Health, told NBC that the low profitability of manufacturing these fluids has deterred companies from entering the market.

IV fluids require significant space and resources to produce and store, and their relatively low cost creates little financial incentive for drugmakers.

Speaking to NBC, Michael Ganio, senior director of pharmacy practice at the American Society of Health-System Pharmacists, added that controlling endotoxins, harmful bacteria resistant to sterilization, further complicates the production process.

In response to the crisis, the federal government has invoked the Defense Production Act, enabling Baxter to secure priority access to materials necessary to rebuild its North Carolina facility.

The FDA has also allowed Baxter to temporarily import IV fluids from plants in Canada, China, Ireland, and the U.K. Despite these efforts, Baxter expects to meet only 90% of its customers’ needs by the end of the year.

The shortage affects hospitals, with many postponing elective surgeries due to insufficient IV fluid supplies.

Citing some analysts, Reuters highlighted that the impact on medical device manufacturers, such as Boston Scientific (NYSE:BSX) and Edwards Lifesciences (NYSE:EW), will be minimal if the shortage is resolved by early next year.

However, the situation remains concerning for hospital operators like HCA Healthcare (NYSE:HCA) and Tenet Healthcare (NYSE:THC), as delays in surgeries could affect their revenues.

Baxter announced that the first FDA-authorized product shipments for temporary importation are set to arrive in the U.S. this weekend.

In collaboration with the ASPR, the company estimates that by year-end, about 200 Boeing 747 cargo planes—equivalent to nearly 18,000 tons of product—will be delivered from Europe and Asia.

Providers could begin receiving these shipments in the coming weeks.

Price Action: Shares of BAX were up 0.02% at $36.66 at the time of publication Friday.

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