David Navazio, CEO of Gentell, a medical supply company based in Yardley, Pennsylvania, faces rising costs due to the oil price shock stemming from the conflict near the Strait of Hormuz. With raw material prices surging by up to 30% and shipping costs doubling, Gentell is grappling with how to manage these increases without losing government contracts or consumer demand.

• 01Gentell's shipping costs have increased significantly, with a container from New Zealand to California now costing about $4,500, up from $2,000.
• 02The company is under pressure to manage rising raw material costs, which have surged by as much as 30% due to reliance on petrochemicals.
• 03Gentell supplies products to nearly 5,000 nursing homes across the U.S., with contracts typically set annually, limiting their ability to pass on cost increases.
• 04CEO David Navazio noted that if the conflict continues, the company will have no choice but to raise prices.
• 05The company has faced multiple challenges, including tariff uncertainties and supply chain disruptions from the COVID-19 pandemic.

The rising costs of medical supplies could affect healthcare providers and ultimately lead to higher prices for consumers.