Pacific Healthcare Case Study

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PACIFIC HEALTHCARE CASE STUDY American Military University Case Name: Pacific Healthcare I. Major Facts Pacific Healthcare and its subsidiaries consists of Pacific Memorial, Pacific Cabrillo, and Pacific Isla Vista. It is the largest provider of healthcare in Santa Barbara County. The director of supply management is Barney Rubble, who is responsible for procuring supplies. Before passing away, Thurston Howell, director of radiology, made all decisions involving the purchasing of X-ray film. Kodak film has been the sole provider of X-ray film for the last 15 years. Kodak film is of the highest quality, but currently priced well above industry competition. Additionally, Pacific Healthcare has an equipment services…show more content…
Pacific Healthcare supply policies should not allow any medical staff the sole authority to make decisions regarding supplier selection. While medical staff could prove to be beneficial on a cross-functional team, supply managers are more adequately prepared to make those decisions. 3. The advantages of staying with Kodak are that Pacific Healthcare not only has a proven quality product, but a cost saving benefit for using Kodak as a single source provider. The disadvantage is Kodak has a position of power over Pacific Healthcare because of the prior agreement in place. Because of this, Kodak can set prices above the market. A change in suppliers may give Pacific Healthcare a savings in X-ray film, but at what cost. The decision to change would upset prior agreements with Kodak and potentially affect product quality. Not to mention the overall total cost of changing suppliers. 4. Mr. Rubble could have approached Mr. Howell with the investigation results, showing just how much more the company was paying for Kodak film. Likewise, Mr. Howell could have also shown Mr. Rubble his reasoning for only using Kodak for the past 15 years. Together, they could of devised a list of pros and cons and perhaps made a decision mutually
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