Baxter Ups IV Fluid Allocations Amid Supply Shortages

Baxter said Wednesday it would increase allocation levels of certain IV fluids as the U.S. manages supply shortages after the company’s largest manufacturing plant was damaged by Hurricane Helene.

The company increased allocation levels of its “highest demand” IV fluids from 40% to 60% for direct customers and from 10% to 60% for distributors, effective Wednesday, according to the update. Baxter also increased the allocation level of IV solutions and nutrition products for designated children’s hospitals to 100%.

Baxter said its goal is to restart production at the North Carolina facility in phases and “return to 90% to 100% allocation of certain IV solution product codes by the end of 2024.”

On Sept. 29, Baxter said it closed its North Cove facility in Marion, North Carolina, after the plant was damaged by Hurricane Helene. The facility manufactures IV fluids and dialysis solutions, producing about 60% of the nation’s supply of IV solutions, according to the American Hospital Association.

Baxter limited the amount of products customers could buy to avoid stockpiling, manage inventory and minimize disruption to patient care. Hospitals around the U.S. have since said they are experiencing shortages of critical supplies. The AHA recently called on the Biden administration to invoke emergency powers to address the problem.

In its latest update, the company said it also increased allocation levels for high concentration dextrose and sterile water for injections. Baxter expects to make additional increases for certain product codes by early November.

The new allocation levels are based on Baxter’s efforts to increase manufacturing at other sites and its current assessment of projected timing for inbound products and air shipments.

Baxter is also continuing to deliver supplies to current peritoneal dialysis patients and is monitoring stock levels of PD solutions. The allocations for PD solutions “remain as communicated,” the firm added, and it’s working to conserve and identify alternative sources of supply across all PD product categories.

Baxter is working with the Food and Drug Administration on the temporary importation of certain products to increase available inventory.

“Our goal continues to be to restore customers to 100% allocation levels as soon as possible,” Baxter said. “This would be achieved through a combination of importing product from other Baxter facilities and the resumption of operations and scale up of production at our North Cove facility.”

On Monday, Baxter said no structural damage was found at the North Carolina facility. However, there are still challenges that will impact restoring full operations, such as flooding and damage to bridges that provide access to the site.

HHS Secretary Xavier Becerra said Wednesday in a letter to healthcare leaders the agency has “been in constant communication with Baxter and other solutions manufacturers to address gaps in supplies.” Becerra said HHS has more than 400 people on the ground in the Southeast, and more personnel are expected.

Becerra asked manufacturers, wholesalers and distributors to evaluate product allocation and for healthcare providers to conserve products, even if there has been no disruption to their supply.

The limited operations at Baxter’s North Carolina facility — and the subsequent shortages of IV fluids — have led other manufacturers to increase their production capacity. B. Braun said it would increase the production of critical IV fluids at a plant in Irvine, California, as part of its coordination with the Administration for Strategic Preparedness and Response.

The production increase, however, comes as Hurricane Milton made landfall in Florida, where B. Braun has an IV solutions manufacturing plant and a distribution center in Daytona Beach. The company said both sites would be closed Wednesday and Thursday — they are scheduled to reopen Friday morning.

B. Braun moved inventory from its Daytona Beach distribution center to a secure, temperature-controlled facility north of Florida to protect finished products.

“Once the storm passes, the product will return to the distribution center,” B. Braun said in the statement. “The Daytona Beach facility is a key part of our plan to help address the shutdown of Baxter’s IV solutions manufacturing facility in North Carolina.”

The firm plans to increase the production capacity of critical IV fluids at its Daytona Beach facility after Hurricane Milton passes.

A spokesperson declined to comment on how much B. Braun would increase production and for how long additional production would be needed.