Pacific Healthcare

Dwayne
Gray

Professor
Wade

TLMT
313

Case
Study 1

19
January 2013

CASE
STUDY 1

Pacific
Healthcare is the largest healthcare provider in California. The
organization uses 1500 sheets of X-ray film per day. Currently
Pacific Healthcare is supplied X-ray film from Kodak. Kodak provides
X-ray equipment, maintenance and service to the equipment at a
discounted price. Kodak provides this equipment at a low cost in
return for Pacific Healthcare using only X-ray film from Kodak. Mr.
Howell was in charge of ordering or choosing the X-ray film supplier.
Mr. Howell liked the service Kodak provided and the quality of the
film from Kodak. Mr. Howell passed away and now there’s a chance
for Pacific Healthcare to change suppliers or stay with the same
supplier. A recent investigation determined that Kodak’s price was
higher than the competition. Kodak charges $1.80 per sheet of X-ray
film.

Agfa
charges $1.58 per sheet of X-ray film and DuPont charges $1.50 per
sheet. These prices are cheaper but the two suppliers do not provide
the services that Kodak provides. Although the two suppliers do have
the same type of quality for their film that Kodak has. Fuji charges
$1.40 per sheet of X-ray film and 3M charges $1.35 per sheet. These
two suppliers have a significant decrease in price compared to the
other competitors. Although 3M and Fuji is cheaper the quality of
their film is not as great or good as Kodak. Even though the film is
not as good it does meet minimum specification requirements.

Pacific
Healthcare should not have a policy in place that allows other
departments to order or purchase supplies. The Director of Supply
Management should draw up a policy outlining that only Supply
Management will be allowed to make outsourcing decisions concerning
supplies or equipment for Pacific Healthcare. The Director of Supply
Management should get the head person in Pacific Healthcare to sign
off on the policy. Once the policy has been approved, Mr. Rubble
should personally take every department in Pacific Healthcare a copy.
In addition to the hand delivered copy, he should email all
departments a copy.

Mr.
Rubble should have the new director of radiology try a few sheets of
X-ray film from each of the competitors. If the new director likes
Kodak as much as the last director did, then it must be worth
annotating. Mr. Rubble should figure how much the cost is for each of
the competitors to provide X-ray equipment and provide service and
maintenance for the equipment. Once Mr. Rubble figures out that cost
then he should add it to the price of a sheet of their film. The cost
of equipment and servicing all together may or may not be cheaper
than Kodak. Mr. Rubble also should see how much Kodak would charge
per sheet of X-ray film, without the equipment and services that go
along with them. It may be cheaper to get the X-ray film from Kodak
but get the X-ray film and services from another supplier.

Supply
Management should handle all supply transactions and decisions in a
healthcare system. Supply Management should also have a materials
management section also. The materials management section would
handle getting all the equipment for Pacific Healthcare. The
materials management section would receive all new equipment and
issue it out to the section or department that would be using the
equipment. The materials management section would also be responsible
for turning in or replacing all broken equipment.

Mr.
Rubble knew a long time ago that he should have been controlling all
outsourcing for Pacific Healthcare. Mr. Rubble came in to a system
that was already running a certain way. Rubble felt that he lacked
the authority to change a broken system to the correct way. Now Mr.
Rubble sees a way to fix a broken system, and that is exactly what he
is going to do.

A
new policy will go into place at Pacific Healthcare. The new policy
will state that all supply and sourcing decisions will go through
Supply Management. The Director of Supply Management will determine
what X-ray film is the best fit at Pacific Healthcare. Once the
Director makes that decision every department will be informed of the
decision and this problem will not happen again.

References

Burt,
David. Petcavage, Sheila. Pinkerton, Richard.”Supply Management”.
New York, NY: McGraw-Hill/Irwin, 2010. Print

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