Supply Chain Management in Hospital a Case - 3654 Words

Supply Chain Management in Hospital: A Case Study Samuel Toba †¢ Mary Tomasini †¢ Y. Helio Yang San Diego State University, San Diego, CA It is a common misunderstanding that hospital purchasing is just a functional part of operations rather than a strategic means to achieve financial cost savings. The supply chain process is the essential link for all programs and services offered by a hospital, and hence any improvement in managing the supply chain can positively impact bottom line profitability of any hospital’s operations. This paper provides an overview of the current issues in supply chain management that today’s hospitals face as well as a look at the measures that a case health organization has taken in managing this aspect of†¦show more content†¦Located in nine states, KP currently is the largest not-for-profit medical care organization in the United States with approximately 8.7 million health plan members, 150,000 employees, 13,729 physicians, 32 medical centers, 416 medical offices, and $28 billion in annual operating revenue. Kaiser Permanente is unique among health care providers a nd hospitals because it serves both as a health maintenance organization and as a group physicians practice provider. Its revenue model is not based by the number of cases or patients served each day, but rather by the number of members enrolled in their health care system. Hence, Kaiser Permanente tracks costs at the gross level view of average cost per nursing unit per patient day. IV. PRODUCT MANAGEMENT Healthcare industry is a cottage industry where clinicians are independent contractors with considerable clout and specific preferences for supplies and some variations in supplies and processes are accommodated to ensure patient safety (Scalise, 2005). These Physician Preference Items (PPIs) account for 40% of total medical supply spending for an average hospital (Volpe, 2007). However, hospitals are beginning to recognize the financial burden of allowing physicians the autonomy to order whatever supplies they choose. One of the opportunities for supply chain savings as identified from the 2005 survey by the Healthcare Financial Management Association is in the area of physician buy-in especially withShow MoreRelatedThe Complexities of Healthcare Supply Chains 855 Words   |  3 PagesHealthcare Supply Chains The healthcare supply chain shares a number of similarities with other chains, not only in terms of processes (e.g. procurement, warehousing, distribution), but also in terms of discerning customers and management structures. There are also differences in the chain that are related to the specific characteristics and requirements of the sector. In general, healthcare supply chains are very complex, diverse, and dynamic. That complexity arises from the numerous companiesRead MoreHospital Supply Chain Management1732 Words   |  7 PagesSupply Chain 1 I Care Healthcare Supply Chain Management By Jeffrey S. 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Like many other hospitals, and other companies, 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 (Heizer Render,Read MoreHow Healthcare Has Become A Hotbed Of Technology1282 Words   |  6 Pagesconsistent, reliable, and effective if it is to continue to attract and satisfy customers. Continuing with this methodology, a critically important facet of the healthcare industry must be stock and inventory management, especially with some of the high cost medical equipment prevalent in hospitals globally. Ironically, this is often the department that is given least consideration as it does not directly relate to the care provided to patients, that is, until recently. 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In this specificRead MoreA More Granular Breakdown Of The Four Categories Shown1196 Words   |  5 Pagespublicized examples of supply-chain implementations sourced from healthcare and hospital environments; †¢ Case studies and related articles: studies, white papers, and published dissertations with a specific focus on the healthcare supply chain; †¢ Supply chain publications and websites: organizations and associations specific to healthcare supply-chain management, including The Association for Healthcare Resource and Materials Management, Healthcare Purchasing News, and Supply Demand Chain Executive. MethodologyRead Morehardy hospital case study answers Essay1426 Words   |  6 PagesRead and Download Ebook Hardy Hospital Case Study Answers PDF at Online Ebook Library HARDY HOSPITAL CASE STUDY ANSWERS PDF Download: HARDY HOSPITAL CASE STUDY ANSWERS PDF Are you seeking Ebook HARDY HOSPITAL CASE STUDY ANSWERS PDF?. 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