Pacific Healthcare Essay

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Pacific Healthcare Case Study
Introduction to Supply Chain Management TLMT 313 B001 Sum 12
Michael Upshaw
July 15, 2012

Pacific Healthcare

I. Major Facts

• Pacific Healthcare is the largest health care provider in Santa Barbara County. The institution consists of three hospitals: Pacific Memorial (415 beds), Pacific Cabrillo (250 beds), and Pacific Isla Vista (300 beds); also included are two nursing homes and ten outpatient clinics. All combined, Pacific Healthcare has over 1,500 beds.

Barney Rubble, corporate director of supply management for Pacific, is in charge of procuring supplies for all Pacific Healthcare subsidiaries.

• Mr.
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Doing that will allow Pacific Healthcare to keep the same quality X-ray film that they and their patients have been used to having with Kodak .Thus decision will also allow for the company to receive the medical supplies at a lower cost.

V. Implementation

• Consider issues and identify ways to meet the needs of Pacific Healthcare and their patients at a lower cost without compromising the quality of the industry standard of a company like Kodak. • Evaluate all of the pros and cons of switching to a new supplier or staying with Kodak. • Make a decision in the best interest for the reputation of Pacific Healthcare and their budget for the next year.


1. What alternatives should Barney Rubble consider when addressing the problem? • Barney should consider changing suppliers to one of the competitors which will provide the X-ray film with the same high quality but lower price. • He should consider the established, long term relationship with Kodak. • He should consider paying the price and staying with Kodak. • He should consider requesting that Kodak meet the price of the competitors to maintain the business of the company.

2. Should Pacific’s supply policies allow for any medical staff personnel to control sourcing decisions? I do not think that Pacific’s supply policies should allow medical staff
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