Baxter closes largest IV solution factory, sparking fears of a shortage
Baxter International was forced to close its North Cove facility in Marion, North Carolina due to Hurricane Helene flooding. The facility is the largest U.S. producer of intravenous (IV) and peritoneal dialysis solutions, sparking fears of a nationwide shortage.
Ahead of the storm, Baxter said it implemented its hurricane preparedness plan, which included evacuating the 2,500 employees who work at the facility and proactively moving products to higher ground or into secure storage. The heavy rain and storm surge triggered a levee breach, which led to water permeating the site. The bridges needed for accessing the site have also been damaged.
"The company is working around the clock in close coordination with local, state and federal officials to assess the extent of the damage and implement a plan to bring the plant back online as quickly as possible to help mitigate supply disruption to patients," Baxter said in a statement.
The American Hospital Association (AHA) sent an announcement out to members on Sept. 30, giving them a heads-up about the factory shutdown and resulting potential for supply shortages. The AHA said the North Cove factory manufactures 60% of the country's supply of IV solutions and was producing 1.5 million bags per day.
The closure of the factory also comes just as east coast dock workers walked off the job to strike.
Baxter said it is communicating with its customers about potential solutions to minimize potential disruptions. These include actively managing inventory and implementing a rationing allocation process by product line. The company said it will also leverage its global manufacturing network to help mitigate potential supply impacts.
A photo of the entrance to the Baxter North Cove facility posted Oct. 2 showing a temporary repair to the old bridge that was badly damaged by flooding, and a new, temporary gravel bridge that an employee was told should be operating as of Oct. 3. Photo by Aerial Lens.
The company said it is also working with various regulatory agencies, including the Department of Health and Human Services, U.S. Food and Drug Administration, Administration for Strategic Preparedness and Response, Federal Emergency Management Agency, Department of Homeland Security, and local and state agencies. Baxter said these agencies understand the supply concerns and are working to support the company to get production back online.
Cleanup and repair has begun
A Baxter employee Facebook page included updates on repair and cleanup work to get the facility reopened as soon as possible.
Photos and video posted to the page showed the employee parking area where flood currents were so strong, numerous vehicles were swept away. Some swamped vehicles are still parked in a lot that is now covered in a thick layer of mud and storm debris. Photos employees posted also showed temporary repair work was already underway on the main bridge into the facility. Employees shared messages about which bridges on the river were still intact—and it appears many roads and bridges along the river were taken out by the storm.
See drone footage of the Baxter facility just after the storm and regular updated photos as recovery work progresses at on the Aerial Lens Facbook page.
Baxter employees also impacted by the flooding
The employee Facebook page also noted the death of at least one Baxter employee from the storm. Employees are connecting to support each other as many do not have running water or power. Some lost their homes.
Some employees said they were very pleased with Baxter's response in supporting aid. Moral seemed to still be very high and many said they were ready and eager to return to work as soon as possible.
“Our hearts and thoughts are with all those affected by Hurricane Helene,” said José (Joe) E. Almeida, chair, president and chief executive officer at Baxter. “The safety of our employees, their families, and the communities in which we operate remains our utmost concern, and we are committed to helping ensure reliable supply of products to patients. Remediation efforts are already underway, and we will spare no resource, human or financial, to resume production and help ensure patients and providers have the products they need.”
The company's Baxter International Foundation has committed $1.5 million in donations to its humanitarian aid partners to help address recovery needs, including allocating additional funds to its Employee Disaster Relief Fund. Baxter is matching employee donations $2:$1 to relief efforts.
Read more about Hurricane Helene's impact on healthcare:
• Federal government moves in to support Asheville, other Helene disaster areas
• Heart Failure Society of America to livestream late-breaking studies after meeting cancellation
Images showing flooding and damage around Baxter's North Cove, North Carolina, manufacturing facility from Hurricane Helene.
Dave Fornell has covered healthcare for more than 17 years, with a focus in cardiology and radiology. Fornell is a 5-time winner of a Jesse H. Neal Award, the most prestigious editorial honors in the field of specialized journalism. The wins included best technical content, best use of social media and best COVID-19 coverage. Fornell was also a three-time Neal finalist for best range of work by a single author. He produces more than 100 editorial videos each year, most of them interviews with key opinion leaders in medicine. He also writes technical articles, covers key trends, conducts video hospital site visits, and is very involved with social media. E-mail: dfornell@innovatehealthcare.com