With the coronavirus outbreak creating an unprecedented demand for medical supplies and equipment, New York state has paid 20 cents for gloves that normally cost less than a nickel and as much as $7.50 each for masks, about 15 times the usual price. It’s paid up to $2,795 for infusion pumps, more than twice the regular rate. And $248,841 for a portable X-ray machine that typically sells for $30,000 to $80,000.
This payment data, provided by state officials, shows just how much the shortage of key medical equipment is driving up prices. Forced to venture outside their usual vendors and contracts, states and cities are paying exorbitant sums on a spot market ruled by supply and demand. Although New York’s attorney general has denounced excessive prices, and ordered merchants to stop overcharging people for hand sanitizers and disinfectant sprays, state laws against price gouging generally don’t apply to government purchases.
With little guidance from the Trump administration, competition among states, cities, hospitals and federal agencies is contributing to the staggering bill for fighting the pandemic, which New York has estimated will cost it $15 billion in spending and lost revenue. The bidding wars are also raising concerns that facilities with shallow pockets, like rural health clinics, won’t be able to obtain vital supplies.
As the epicenter of the pandemic, with about 40% of the nation’s coronavirus cases, New York state is especially desperate for medical equipment, no matter what the tab. “We know that New York and other states are in the market at the same time, along with the rest of the world, bidding on these same items, which is clearly driving the fluctuation in costs,” budget office spokesman Freeman Klopott said in an email.
The Office of General Services, New York’s main procurement agency, declined to say which sellers were inflating prices for essential medical gear. “At this moment in time the New York State team is focused on procuring goods and services based on current market conditions,” OGS spokeswoman Heather Groll wrote in an email. “There will be time to look back and pull together info on all this, that time will be when the pandemic is over.”