Arnold Palmer Hospital was founded in 1989. It is one of the largest hospitals for women and children in U.S., with 431 beds in two facilities totaling 676,000 square feet. Located in downtown Orlando, Florida, and named after its famed golf benefactor, the hospital with more than 2000 employees serves an 18-country area in central Florida and is the only Level 1 trauma centre for children in that region. Arnold Palmer Hospital provides a broad range of medical services including neonatal and paediatric intensive care, paediatric oncology and cardiology, care for high-risk pregnancies, and maternal intensive care.
Arnold Palmer Hospital had been a long-time member of a large buying group, one servicing 900 members. But the group did have a few limitations. For example, it might change suppliers for a particular product every year (based on a new lower-cost bidder) or stock only a product that was not familiar to the physicians at Arnold Palmer Hospital. The buying group was also not able to negotiate contracts with local manufacturers to secure buying pricing. Effective supply chain management in manufacturing often focuses on development of new product innovations and efficiency through buyer-vendor collaboration. However, the approach in a service industry has a slightly different emphasis. At Arnold Palmer Hospital, supply chain opportunities often manifest themselves through the Medical Economic Outcomes Committee. This Committee (and its subcommittees) consists of users (including the medical and nursing staff) who evaluate purchase options with a goal of better medicine while achieving economic targets.
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