Andrew Cuomo says states are outbidding each other and raising prices for critical coronavirus medical supplies
- New York Gov. Andrew Cuomo warned that states are counter-productively bidding up the prices of critical medical equipment and protective gear as they attempt to amass supplies from manufacturers.
- "This is not the way to do it, this is ad hoc, I'm competing with other states, I'm bidding up other states on the prices," the New York Democrat said.
- The governor also urged President Donald Trump to use the Defense Production Act to mandate that private manufacturers produce some essential medical supplies amid major nationwide shortages.
- States have also been outbid by the federal government. Last week, Massachusetts Gov. Charlie Baker told Trump he was denied three major orders of equipment because the feds had outbid him.
- Last week, Trump insisted it's not the federal government's job to procure necessary medical equipment for states amid the pandemic.
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New York Gov. Andrew Cuomo warned that states are counter-productively bidding up the prices of critical medical equipment and protective gear as they attempt to amass supplies from manufacturers amid the coronavirus pandemic.
The governor praised private companies that have volunteered to produce much-needed equipment, but argued that many manufacturers are looking for the highest bidder, thus pitting states against each other in a race to gather limited supplies.
"This is not the way to do it, this is ad hoc, I'm competing with other states, I'm bidding up other states on the prices," Cuomo said during a Monday press conference.
In a plea to President Donald Trump, Cuomo argued that the federal government needs to use the Defense Production Act to mandate that private manufacturers produce some essential medical supplies, including masks, gloves, and ventilators.
He argued that invoking that act doesn't amount to nationalizing a company, directly addressing Trump's remark last week that he wants to avoid "nationalizing our businesses."
"It does not nationalize any industry, all it does is it says to a factory you must produce this quantity," he said. "Yes, it is an assertion of government power on private sector companies, yes, but so what? This is a national emergency. And you're paying the private sector company ... and by the way they're going to get paid handsomely. You cannot continue to do these supplies on an ad hoc basis."
This comes as the US is facing a widespread shortage of crucial personal protective gear for medical professionals and other key medical equipment. Doctors and nurses around the country have been forced to wear single-use face masks repeatedly because their hospitals and clinics are running out of gear.
The federal government is also outbidding states on orders of critical medical equipment necessary to aid patients and protect medical professionals from coronavirus, even though Trump has repeatedly insisted states get their own supplies.
During a conference call with governors last Thursday, Massachusetts Gov. Charlie Baker told Trump his state was denied three major orders of equipment because the federal government had outbid him.
"I'm not quite sure what to do with this, so I'm just going to throw it out there for you," Baker told Trump on the call, according to Bloomberg News. "We took very seriously the push ... that we should not just rely on the stockpile, that we should go out there and buy stuff and put in orders and try to create pressure on manufacturers and distributors, and I gotta tell you that on three big orders, we lost to the feds."
Baker, a moderate Republican, added, "I've got a feeling that if someone has the chance to sell to you and to sell to me, I am going to lose on every one of those."
Trump chuckled at that and then said the federal government probably offered the manufacturers a better price.
"Price is always a component of that also," Trump said. "And maybe that's why you lost to the feds, okay, I'll tell you, that's probably why."
Last week, Trump insisted it's not the federal government's job to procure necessary medical equipment for states amid the pandemic.
"The federal government's not supposed to be out there buying vast amounts of items and then shipping," Trump said during a White House briefing. "You know, we're not a shipping clerk."
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