Case Name: Pacific Healthcare
I. Major Facts
Pacific Memorial, Pacific Cabrillo and Pacific Isla Vista hospitals along with two nursing homes and ten outpatient clinics make up one of the largest health care provider in Santa Barbara County and they all are part of Pacific Healthcare. In organization that has over 1,500 beds. Pacific’s director of supply management is Barney Rubble who is charge of procuring supplies. Mr. Thurston Howell who was the director of radiology for the past fifteen years before passing was in charge of supplier selection for the X ray film. Mr. Howell had only one supplier that he choose for the X ray film and that was Kodak, but after Mr. Howell’s passing Mr. Rubble was given opportunity to relook and the possibility and changing suppliers. After doing some researching Mr. Rubble found out that there were other competitors with prices lower than that of Kodak. Kodak provided Pacific a discount fi they would use Kodak’s film along with using their X ray equipment, maintenance and service. Pacific use 1,500 sheets of Kodak X ray film a day at $1.80 per sheet can be costly over a time period. II.
Will Pacific benefit if they would go to a cheaper competitor other than Kodak and if so will they still receive the same quality and service they did with Kodak? III. Possible Solutions
A. Mr. Rubble could continue using Kodak as they have been providing service to Pacific now for 15 years and by using Kodak’s X ray film they received a discount. On the other hand Pacific is using 1,500 sheets per day at $1.80 that’s $2,700 a day, that’s $81,000 a month, and $972,000 a year. B. Mr. Rubble could go with Dupont or Agfa whose quality is of the same consistent as Kodak. With Dupont it’s $1.50 per sheet and with Agfa it’s $1.58 per sheet, by using Dupont Pacific would save $162,000 and by using Agfa they would save $118,800, but they would loss those services that was offered by Kodak like maintenance as...
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