Spatially Equitable Allocation of Medical Resources for Pandemic Containment: A Service Level-Based Approach

Abstract

Minimizing the total expected shortage of medical resources is a critical policy concern for protecting against the COVID-19 pandemic and future health emergencies. Equity in distribution is a paramount principle when implementing medical resource allocation mechanisms during such crises. Reserve systems can effectively address several significant limitations of existing allocation mechanisms. In this article, we address the antiviral drug allocation problem, focusing on the government’s strategy to allocate limited physical stockpiles and manage emergency procurement from the spot market. We employ the normal distribution to characterize the fluctuation in demand for antiviral drugs at the aggregate level. Utilizing a spatial equitable allocation model, we derive the government’s optimal allocation policy based on service level. Our findings indicate that to effectively reduce the total expected shortage of antiviral drugs, the government should prioritize a higher service level in regions with greater demand fluctuations. Furthermore, incorporating an allocation mechanism that considers capital reserves enhances the government’s flexibility in equitably distributing antiviral drugs amid uncertain demand. A key determinant of this flexibility is the emergency procurement price in the spot market. This study offers a framework for service level-based considerations in medical resource allocation, highlighting the importance of balancing efficiency and equity in the complex context of epidemic control.