Pacific Healthcare Case Study

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Case Study One
Case Name: Pacific Healthcare I. Major Facts Pacific Healthcare is the largest health care provider in Santa Barbara Country. Pacific Memorial, Pacific Cabrillo, and Pacific Isla Vista along with two nursing homes and ten outpatient clinics are all linked to Pacific Healthcare. Altogether, there are over 1,500 beds. Barney Rubble, the Pacific’s corporate director of supply management, is in charge of procuring supplies for all Pacific Healthcare subordinates. The director of radiology, Mr. Thurston Howell, has been in charge of the X ray film supplier selection for over fifteen years and he has used any other X ray film suppliers but Kodak. After Mr. Howell passed away, Mr. Rubble has the option to find new suppliers
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Mr. Rubble could go ahead and ask each and everyone from the medical staff for his or her inputs on whether to continue the contract with Kodak or change to a different supplier. Reason that Mr. Rubble might not choose the other options is that they might not be as stable and efficient as Kodak. Mr. Rubble will be better off by staying with the one supplier that the company has been for past fifteen years.

V. Implementation
Mr. Rubble, as the new manager of procurement suppliers, needs to understand the key factors required to grow profitability, to improve efficiency and satisfy customers. Mr. Rubble needs to also get all employees involved, have an effective communication, and establish a clear vision for the strategic planning.


1. What alternatives should Barney Rubble consider when addressing the problem?
Alternatives that Mr. Rubble should consider when addressing the problem are to analyze his annual performance report, review customer feedbacks and evaluate the supplier’s performance to see if it meets his expectations.

2. Should Pacific’s supply policies allow for any medical staff personnel to control sourcing decisions?
Absolutely not, because sourcing decisions are usually made in a logical and orderly manner, and always step-by-step process that takes us to a sourcing decision. However, the supply policies should address a procedure that would allow other personnel to
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