Federal Government Spent $8.2 Billion On Medical Supply Chain

HIDA Market Report Examines Procurement Purchases

February 2023

Government procurement is a large and growing part of the healthcare distribution industry. HIDA’s new Federal Procurement Market Report analyzed government contract awards unique to the medical supply chain, documenting this federal spending in unprecedented detail.

Total Spending

U.S. federal government spending on medical supplies exceeded $8.2 billion in fiscal year 2021.

Agency Concentration

Four agencies – Defense, Homeland Security, Veterans Affairs and Health & Human Services – accounted for 98% of federal purchases.

Small Business Focus

In FY 2021, $2.4 billion in federal contracts were awarded to small businesses selling medical goods. This includes 38% of defense and 22% of civilian agency medical supply purchases.

Supplier Diversity Goals

Diverse small businesses were awarded $1.35 billion in medical supply contracts in FY 2021 – including minority-owned, woman-owned, veteran-owned, Indian-owned, or located in Historically Underutilized Business Zones.