Sleep labs and suppliers across the U.S. are bracing for the economic ripple effects of sweeping new tariffs on imported goods.
Consider, for example, a typical sleep diagnostic test. It might consist of a small machine, a box with plastic casing that houses electronics. Many of its components—the plastic or silicone of the nasal cannula, the wires that connect to the pulse oximeter, the electronics inside—could travel through a long and twisting supply chain, crossing several borders before they land in a sleep lab in the United States.
These complex supply chains often take years to establish and are built on trust—trust that the United States’ global order of free trade will continue. On April 2, that all came into question when President Trump announced new tariffs on all foreign imports.
A flat 10 percent tariff has already gone into effect, with a 90-day pause currently in place on additional country-specific tariffs. Some of those future tariffs, like those on Chinese goods for instance, could be as high as 245 percent, according to a statement issued by the White House on April 15.
Uncertainty abounds as the outlook on the global trade landscape changes from day to day. Sleep diagnostic companies are reflecting on how and when to respond, and sleep lab managers are left wondering if the tariffs will strain the economics of their businesses, potentially altering the care they are able to provide patients.
Sleep Labs and Suppliers Respond
“Smaller practices may struggle to remain competitive, and patients could ultimately feel the impact through limited access or increased out-of-pocket costs,” says Lauri Leadley, CCSH, RPSGT, founder and president of the Arizona-based Valley Sleep Center, one of the largest privately owned sleep medicine practices in the southwest.
While some sleep providers say they have yet to see significant price fluctuations, others have reported seeing spikes already factored into the cost of sleep testing supplies. Felipe Lerida, RPSGT, a clinical product manager at diagnostics company Neurovirtual, says his company has heard from concerned hospital administrators who are freezing capital purchases until the tariff situation is settled due to large increases in the cost of sleep testing consumables. “It is a concern for many health care systems,” Lerida says.
Neurovirtual already manufactures its sleep testing equipment in the United States, with limited components sourced globally. Lerida expects to see little impact from the tariffs. “We are working closely with our partners to mitigate cost impacts and ensure price stability for our clients,” he says.
To get ahead of potential price increases, some sleep labs have stockpiled supplies. SomneuroLab, a sleep research laboratory housed in the University of Massachusetts Amherst’s Department of Psychological and Brain Sciences, is one of them.
“We had stocked up on some supplies in December knowing the potential for some changes, and so far, that is paying off,” says Rebecca Spencer, PhD, professor of Psychological and Brain Sciences, who oversees the lab.
Staff did collect extra supplies, but maybe not as much as they would have wanted. “I’d say we’ve planned less for the tariffs because our funding stream is so up in the air,” explains Spencer. “We have National Institutes of Health (NIH) grants, but whether they pull (our funding) seems so tenuous it’s hard to do a lot of planning.”
Other labs are taking a “wait-and-see” approach. At Tampa General Hospital’s Sleep Disorders Center, coordinator William (Robby) Beauchamp, RT, RPSGT, says the lab is continuing as usual and has not seen any changes so far.
“We order items through our purchasing department, and then they are the ones responsible to actually get it to the hospital,” he says. “No information has come from our vendors about pricing increases or product unavailability.”
Larger Providers Look to Mitigate Impact
At Valley Sleep Center, staff have taken proactive steps to stay ahead of possible supply chain disruptions and price increases. The Arizona practice consists of nine dedicated sleep locations and a total of 46 beds as well as an in-house durable medical equipment (DME) division.
Over the past year, the center accelerated the purchase of new polysomnography (PSG) systems and upgraded their home sleep testing fleet. They also expanded inventory of continuous positive airway pressure (CPAP) masks, tubing, and replacement parts.
“We’ve had ongoing conversations with key suppliers of diagnostic equipment and CPAP devices, who have confirmed that tariffs could impact both pricing and lead times,” Leadley says. “These discussions have helped us plan strategically, though uncertainty remains.”
To help absorb potential price hikes and shield patients from cost burdens, Valley Sleep Center is exploring operational efficiencies across the supply chain, consolidating vendor contracts for better pricing, and leveraging the scale of their multi-location footprint. Additionally, they are investing in more staff training and workflow automation to offset rising supply costs without compromising care quality, Leadley says.
Tariffs Could Shift Industry Dynamics
Several sleep diagnostics companies and suppliers contacted for this article noted that due to the volatility of the tariff situation, their businesses are watching and waiting before issuing any public statements about plans.
For some American companies, the tariffs may create opportunities rather than fallout. Those with an already strong presence in the United States could stand to benefit, including Neurovirtual, which manufactures its sleep testing equipment in Florida.
Wesper, a New York-based sleep diagnostics firm that produces home sleep tests, currently works with manufacturing partners in Asia. The company might consider moving production to the U.S. in the future, when it becomes financially feasible. Wesper CEO and founder Amir Reuveny says there could be potential benefits to making the move, including the ability to easily monitor and visit factories.
“We are monitoring the situation with the tariffs closely,” says Reuveny, noting that the company is committed to continuing to offer competitive pricing regardless of the tariffs.
“We realize it is going to be a very turbulent time right now with the economic changes—we are looking for alternatives, and what options we have in case the situation proceeds,” he says. “We also realize that it might be a little bit too soon to act and react because of the uncertainty.”
Resmed a global leader in sleep supplies and CPAP machines, already had plans in motion to expand U.S.-based manufacturing.
Scheduled to open in June, the company’s new $30 million facility in Calabasas, Calif., will nearly double the company’s U.S. manufacturing footprint. The location will focus on producing mask components and core motor technologies, especially for the domestic market, according to a Resmed statement.
“Resmed does not expect new U.S. tariffs to materially impact our business,” says Brad Lotterman, senior director of Corporate Communications at Resmed. “Our strong operational efficiency, supply chain resilience, and long-standing tariff relief have helped us maintain price stability for patients and providers.”
Cross-Border Business May Face New Barriers
For companies based outside the U.S., however, the outlook is more complicated. Mark Younes, a former business manager at a Canadian sleep diagnostics firm, says it will undoubtedly become harder for any foreign company to do business with the U.S. on the diagnostics side.
“You’re now introducing extra cost into an already saturated market with razor-thin margins,” says Younes, who is based in Winnipeg, Manitoba. “To actually develop the supply chain, to get regulatory approvals, to get all the moving parts lined up—you are talking years potentially and lots of money and commitments.”
Many questions remain about what exactly the new tariffs would impact and what qualifies as a U.S.-manufactured product. For example, if a device is manufactured in the U.S. but has parts from China or Canada, “Would there be tariffs on that?” Younes asks.
“I don’t know,” he says. “…You are talking about someone who is making knee-jerk decisions that can undermine your entire business in the blink of an eye.”
The Road Ahead
In response to growing concerns about the looming global trade war, the Advanced Medical Technology Association (AdvaMed) is proposing a tariff exemption for all medical devices.
AdvaMed is a trade association representing manufacturers of medical devices, diagnostic products, and medical information systems. One of its more than 500 members, Resmed is actively engaging with industry leaders and key government stakeholders to underscore the role of medical technology in the global health care ecosystem.
“Our collective goal is to ensure that the unique impact of proposed tariffs on our sector is clearly understood and considered, helping to safeguard patient access and minimize potential disruptions to innovation and supply chains,” Lotterman says.
As the 90-day pause nears an end, the sleep medicine industry remains in wait-and-see mode. The situation continues to evolve and could shift dramatically before the tariff reprieve is up. But even if tariffs are rolled back, experts warn the ripple effects on supply chains, pricing, and cross-border partnerships could be felt for years to come.
Lisa Spear is a science writer covering the frontiers of innovation in sleep medicine, neuroscience, and medical technology.
Side Bar: A Dental Sleep Perspective
By Stephen Carstensen, DDS
As U.S. tariffs threaten to drive up the cost of medical imports, dental sleep professionals are also bracing for the fallout. Like other clinicians in sleep medicine, many are taking a cautious, wait-and-see approach.
Because most oral appliance devices are custom-made in the U.S., many in the field hope they will be largely insulated from the implications of shifting trade policy. “I don’t think there would be much effect on our cost of custom devices, but cost of devices will go up if the components are sourced overseas—and there are no exemptions,” says Stephen Carstensen, DDS, a dentist serving patients in Bellevue, Wash., who is a diplomate of the American Board of Dental Sleep Medicine. “Our manufacturing partners do not operate with margins that can absorb import taxes without passing them along.”
Therefore, Carstensen expects to see the cost of CPAP supplies rise, which might exceed patients’ insurance limits and create higher out-of-pocket expenses. “More patients may choose to have a dental device made, which will be less subject to this uncertainty,” he says. His own practice sources most supplies domestically and hasn’t made any preemptive inventory changes.
In talking with those in the broader sleep medicine community, Carstensen says his colleagues remain concerned but unsure. “No one knows with certainty how this will play out for them or their company, given the on-and-off again nature of the decisions by the government,” he says.
Manufacturers may be particularly vulnerable due to U.S. Food and Drug Administration (FDA) regulations that limit flexibility in sourcing approved components for medical devices. “Often there are several components in each unit, and switching suppliers or materials is not simply a matter of ordering from a different company,” Carstensen says. “That puts our manufacturing partners in a bind—to be able to fulfill prescriptions for medical devices, they have to stick to what’s been authorized or they risk their entire business.”
Despite the uncertainty, Carstensen does see an opportunity for some dentists to recoup increased costs. “If dentists who are up for renewing in-network contracts are facing higher supply costs to go along with typical cost-of-doing-business increases, they will have good cause to seek higher reimbursement amounts from medical payers,” he says.
A Dental Sleep Perspective
As U.S. tariffs threaten to drive up the cost of medical imports, dental sleep professionals are also bracing for the fallout. Like other clinicians in sleep medicine, many are taking a cautious, wait-and-see approach.
Because most oral appliance devices are custom-made in the U.S., many in the field hope they will be largely insulated from the implications of shifting trade policy. “I don’t think there would be much effect on our cost of custom devices, but cost of devices will go up if the components are sourced overseas—and there are no exemptions,” says Stephen Carstensen, DDS, a dentist serving patients in Bellevue, Wash., who is a diplomate of the American Board of Dental Sleep Medicine. “Our manufacturing partners do not operate with margins that can absorb import taxes without passing them along.”
Therefore, Carstensen expects to see the cost of CPAP supplies rise, which might exceed patients’ insurance limits and create higher out-of-pocket expenses. “More patients may choose to have a dental device made, which will be less subject to this uncertainty,” he says. His own practice sources most supplies domestically and hasn’t made any preemptive inventory changes.
In talking with those in the broader sleep medicine community, Carstensen says his colleagues remain concerned but unsure. “No one knows with certainty how this will play out for them or their company, given the on-and-off again nature of the decisions by the government,” he says.
Manufacturers may be particularly vulnerable due to U.S. Food and Drug Administration (FDA) regulations that limit flexibility in sourcing approved components for medical devices. “Often there are several components in each unit, and switching suppliers or materials is not simply a matter of ordering from a different company,” Carstensen says. “That puts our manufacturing partners in a bind—to be able to fulfill prescriptions for medical devices, they have to stick to what’s been authorized or they risk their entire business.”
Despite the uncertainty, Carstensen does see an opportunity for some dentists to recoup increased costs. “If dentists who are up for renewing in-network contracts are facing higher supply costs to go along with typical cost-of-doing-business increases, they will have good cause to seek higher reimbursement amounts from medical payers,” he says.
By Lisa Spear
