Pacific Healthcare - Assignment Example

TLMT313 Assignment Question1 As per the case scenario, it can be revealed that ‘Pacific Healthcare’ is one among the major healthcare provider to the people of ‘Santa Barbara Country’. The three key hospitals under the ‘Pacific Healthcare’ include ‘Pacific Memorial’, ‘Pacific Cabrillo’ and ‘Pacific Isla Vista’. Additionally, it also includes 2 ‘nursing homes’ and 10 ‘outpatient clinics’, which all together have around 1,500 beds for the patients. Barney Rubble is the corporate director and undertakes the responsibility of overall Pacific Healthcare subordinates supply and Mr. Thurston Howell, was the in charge of the X-ray supply. Moreover, in relation to the case scenario, it has also been reflected that after the death of Mr. Howell, Mr. Rubble is having the option to opt for new supply as per his convenience and overall profitability of the healthcare. Mr. Rubble has noticed that Kodak is charging higher prices as compared to other suppliers. The key problem is that. Rubble is accountable for the authority for the selection of the suppliers. The alternative measures that Mr. Rubble can take in this underlining situation is that he needs to clearly define the problem that the pacific healthcare is encountering or may encounter in the future state of action. Moreover, being left as the sole authority of overall supply requirements of the healthcare, he could now freely sign the agreement with other suppliers of the X-ray sheets with regards to considering the current contractual agreement with Kodak company on the basis of his own individual decision making aspect. Apart from that he and other higher authorities needs to determine and evaluate the products and services of Kodak in regards to quality, services, price, maintenance and other necessary equipments. The proper evaluation of the quality supplied in the previous years and current scenario must be evaluated with the proper measures. With regards to this alternative, the healthcare can significantly ask other suppliers to provide the sample, which the healthcare can evaluate with its requirement so that the best alternative gets selected out of the available alternatives. Furthermore, it is important to consider the most likely impacts of the existing alternative approach over the long term prospective impact. Nevertheless, the healthcare to stay with the supply of Kodak is also available to them. Question 2 In the healthcare industry in order to effectively manage and improve the patient health conditions, it is quite important and critical to evaluate their underlining situation in a better way. Additionally, in managing such condition the healthcare hospitals needs to properly ensure the availability of all the necessary equipments, resources and stationeries at the right time and right quantity. Moreover, in order to track further complications of patients, physical examination in an in-depth manner is needful and the X-ray sheet plays a prior important role in such tasks. On the other hand, regardless of the underlining case scenario with the death of Mr. Thurston Howell, who was the in charge of the X-ray supply in the hospital, the problem was regarding the fact to who will take over the decisions, for the company. Moreover, with the involvement of supply chain as one of the integral parts of comprehensive healthcare emergency system, which aids in offering valuable emergency care services requirements related to the patient suffering. In this regard, proper decision making is an important aspect to safeguard the life of patients. Additionally, the supply of the necessary healthcare equipments is noted to assist the physicians in keeping constant track of the conditions of the patients. In such scenario, Barney Rubble who is working as a corporate director and undertakes the responsibility of overall Pacific Healthcare subordinates supply is having the authority to take sole decision regarding the supply management for greater effectiveness in the healthcare for the patients. In this respect it can be affirmed that Pacific’s supply policies allow other higher authorized medical staff executive or the decision maker with the consult of the management to control the necessary sourcing decisions, which needs to be undertaken so that ultimately the patient healthcare is not risked. Question 3 In the current scenario, it is quite apparently viewed that health care providers and hospitals are highly engaged in building a sound and more sustainable measure in the field of the medical products and other necessary equipments supplies. In this regard, it is important to have a long term relation with the suppliers for better quality products and services. In the case of Pacific Healthcare, the largest health care provider of the nation after the death of the Mr. Howell was facing a dilemma regarding the supplier of X-ray products. In this regard, the hospital was having the option to either stay with the current supplier i.e. Kodak for the supply of X-ray or switch to other supplier. The significant advantage of staying with the Kodak supplier for the necessary supplies is that the healthcare group was aware of the quality products that Kodak provides as compared to others. Furthermore, staying with Kodak can prove to be effective in order to maintain good vendor and supplier relationship, amid Pacific Healthcare and Kodak, which lead to high trust, respect, mutual benefit and fairness along with honesty. Moreover, as the case scenario reveals that Mr. Howell, for the last fifteen years highly relied on the Kodak film, this reflects the significant role played by Kodak in the success of Pacific Healthcare. Nevertheless, staying with Kodak apart from charging high price for its film could be beneficial in terms of meeting their aspirations, prospects, objectives and avoid engaging any conflicting relation, which Pacific Healthcare might faces if they switch to other suppliers (Ford et al., 2012). Besides, having significant advantage of staying with Kodak for the supply of film the key disadvantage that Pacific Healthcare is ignoring is the other suitable option to reduce the cost of hospitals overall operation. In the current scenario, in relation to the case facts, quality that the Dupont and Agfa are offering in regards to their film is comparatively same as the Kodak films. Moreover, as per the case facts the requirement of the Pacific Healthcare is 1500 films per day and if they stay with Kodak it will cost them around $2700 per day ($1.8*1500). Whereas, Dupont and Agfa will charge for the same around $2370 and $2250 respectively, this is quite lower than that of Kodak. Moreover, Kodak also significantly knows their importance because of the long relationship with Pacific Healthcare. This may led to unfair trade practice from them that are hard to monitor for Pacific Healthcare in term of quality of films. Additionally, it will create high dependency on Kodak to ensure supply of products (Ford et al., 2012). However, the evaluation of the suppliers can be made through the parameter of commitment towards the quality, cost comparison, communication, timely service, flexibility, production and supply capacity, financial stability, inventory and technical assistant (Egerod & Nordling, n.d.). Question 4 As referred above, the major problem in the stated case scenario is that Mr. Rubble, with the sudden death of Mr. Howell has to look after the X-ray supplies. The issue that the company is facing is regarding the high price quoted by Kodak the supplier, which is affecting the business process. In this context, Mr. Rubble being one of important position holder of the company should have asked Mr. Howell for the justification regarding selecting Kodak as a prior choice regardless of the high prices it charges as compare to its competitor for the same level of quality in the product. Moreover, Kodak films are considerably expensive as compare to other supplier costs, which is leading to the increase in the hospital cost. In this regard, management should have evaluated the cost of all the suppliers who can meet the Pacific Healthcare specification before Mr. Howell death and recommended him to switch to the different supplier. Furthermore, Mr. Rubble should have properly guided through making a prior strategic budgetary planning in regards to the cost allocated in the films procurement. This strategic plan would help to direct the way in which Mr. Howell should have focused for selecting the right supplier from the available alternative suppliers with respect to cost and quality. References Egerod J., & Nordling, E. (n.d.). Strategic supplier evaluation. Retrieved from http://www.diva-portal.org/smash/get/diva2:377797/FULLTEXT01.pdf Ford, C., Maughan, A., & Stevenson, S. (2012). Single and multi-sourcing models. Retrieved from http://media.mofo.com/files/Uploads/Images/110504-Single-and-multi-sourcing-models.pdf Read More