Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 269 views

    Arnold Palmer Hospital's Supply Chain

    Uploaded by

    Michelle Ann Wong
    Arnold Palmer Hospital formed the Healthcare Purchasing Alliance with seven other hospitals to gain more negotiating power with suppliers. Through the HPA, the hospitals were able to sign longer, 3-5 year contracts which secured better pricing and guaranteed volumes. This allowed the alliance to save its members $7 million in its first year. Arnold Palmer Hospital is also able to work with supply chain partners to customize products like operating room packs in a way that lowers costs while meeting the specific needs of physicians and patients.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Arnold Palmer Hospital's Supply Chain

    Uploaded by

    Michelle Ann Wong
    269 views1 page
    Arnold Palmer Hospital formed the Healthcare Purchasing Alliance with seven other hospitals to gain more negotiating power with suppliers. Through the HPA, the hospitals were able to sign longer, 3-5 year contracts which secured better pricing and guaranteed volumes. This allowed the alliance to save its members $7 million in its first year. Arnold Palmer Hospital is also able to work with supply chain partners to customize products like operating room packs in a way that lowers costs while meeting the specific needs of physicians and patients.

    Original Title

    Arnold Palmer Hospital’s Supply Chain

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Arnold Palmer Hospital formed the Healthcare Purchasing Alliance with seven other hospitals to gain more negotiating power with suppliers. Through the HPA, the hospitals were able to sign longer, 3-5 year contracts which secured better pricing and guaranteed volumes. This allowed the alliance to save its members $7 million in its first year. Arnold Palmer Hospital is also able to work with supply chain partners to customize products like operating room packs in a way that lowers costs while meeting the specific needs of physicians and patients.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    269 views1 page

    Arnold Palmer Hospital's Supply Chain

    Uploaded by

    Michelle Ann Wong
    Arnold Palmer Hospital formed the Healthcare Purchasing Alliance with seven other hospitals to gain more negotiating power with suppliers. Through the HPA, the hospitals were able to sign longer, 3-5 year contracts which secured better pricing and guaranteed volumes. This allowed the alliance to save its members $7 million in its first year. Arnold Palmer Hospital is also able to work with supply chain partners to customize products like operating room packs in a way that lowers costs while meeting the specific needs of physicians and patients.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Arnold Palmer Hospital’s Supply Chain

    Arnold Palmer Hospital (APH) , one of the nation’s top hospitals dedicated to serving women &
    children, is a large business with over 2,000 employees working in a 431-bed facility totaling
    676,000 square feet in Orlando, Florida. Like many other hospitals, and other companies, APH
    has been a long-time member of a large buying group, one serving 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 APH. The buying group was also not able to negotiate contracts with local
    manufacturers to secure the best pricing.

    So in 2003, APH, together with seven other partner hospitals in central Florida, formed its own
    much smaller, but still powerful (with $200 million in annual purchases) Healthcare Purchasing
    Alliance (HPA) corporation. The new alliance saved the HPA members $7 million in its first year
    with two main changes. First, it was structured and staffed to assure that the bulk of the savings
    associated with its contracting efforts went to its eight members. Second, it struck even better
    deals with vendors by guaranteeing a committed volume and signing not 1-year deals but 3 to 5
    year contracts. “Even with a new internal cost of $ 400,000 to run HPA, the savings and ability
    to contract for what our member hospitals really want makes the deal a winner, “ says George
    deLong, Head of HPA.

    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 sub-committee) consists of users (including the medical
    and nursing staff) who evaluate purchase options with a goal of better medicine while achieving
    economic targets. For instance, the heart pacemaker negotiation by the cardiology sub-
    committee allowed for the standardization to two manufacturers, with annual savings of $ 2
    million for just this one product.

    APH is also able to develop customs products that require collaboration down to the third tier
    of the supply chain. This is the case with custom packs that are used in the operating room.
    The custom packs are delivered by a distributor, McKesson General Medical, but assembled by
    a pack company that uses the materials the hospital wanted purchased from specific
    manufacturers. The HPA allows Arnold Palmer Hospital to be creative in this way. With major
    cost savings, standardization, blanket purchase orders, long-term contracts, and more control
    of product development, the benefit to the hospital are substantial.

    You might also like