Health IT Industry Feels Ripples From Japan Quake

By Ken Congdon, editor in chief, Health IT Outcomes

Last month's 9.0 earthquake and tsunami in Japan was one of the most tragic natural disasters in recent history. In its wake, the region is struggling to cope with the loss of loved ones, mass scale destruction, and the constant threat of a nuclear meltdown. With everything the Japanese people are dealing with, it seems a bit insensitive to examine how regions of the world not directly rocked by the quake are being impacted by the tragedy. However, one can't ignore the toll this disaster is having on the global economy — particularly the laws of supply and demand.

For example, a coworker of mine was recently shopping for a new car. He and his family had done all their research and decided that a Subaru was the right choice for them. They visited our local Subaru dealer last week, ready to purchase a vehicle, but were disappointed to learn that the dealer only had a few on the lot. Apparently, shipments of new vehicles to the dealer have been limited and sporadic because Subaru (as well as Toyota, Honda, and Nissan) were forced to shut down production plants due to the damage they sustained from the earthquake.

A similar scenario is playing out in the healthcare IT industry. For example, our publisher recently spoke with a senior executive from a mobile computing manufacturer. This vendor relies on a company in Japan to supply one particular component for one of its healthcare-specific mobile devices. Unfortunately, this Japanese supplier's main manufacturing plant was completely wiped out by the tsunami. This tragic event has the vendor scrambling to find a new supplier and has temporarily halted its production of this particular mobile computer.

In a separate conversation, an executive from a medical imaging device manufacturer expressed similar challenges. This vendor was in the midst of launching several new product lines, but was forced to halt these efforts because several of its Japanese manufacturing facilities were lost or damaged due to the earthquake. The company was forced to scale back its growth initiative and focus only on producing existing products until damaged facilities are once again operational.

Now, these business examples are nothing compared to the human tragedy Japan is experiencing at the moment. However, it is interesting to witness how a natural disaster half a world away can impact our little corner of the health IT world here in the U.S. Have you personally experienced any ill affects from the Japan earthquake? For example, are you a health IT vendor whose production capabilities or supply chains have been negatively impacted as a result of the quake? If so, what is the prognosis and what is being done to address these issues? Or, are you a member of a hospital or medical practice whose access to new or upgraded technology has been compromised by the disaster in Japan? If so, email your stories to ken.congdon@jamesonpublishing.com. I'd be interested in hearing them.

Ken Congdon is Editor In Chief of Health IT Outcomes. He can be reached at ken.congdon@jamesonpublishing.com.