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Arnold Palmer Hospital one of the nation’s top hospitals dedicated to serving women and 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, 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 Painter Hospital. The buying group was also not able to negotiate contracts with local manufacturers to secure the best pricing.
Discussion Questions
1. How does this supply chain differ from that in a manufacturing firm?
2. What are the constraints on making decisions based on economics alone at Arnold Palmer Hospital?
3. What role do doctors and nurses play in supply-chain decisions in a hospital? How is this participation handled at Arnold Palmer Hospital?
4. Doctor Smith just returned from the Annual Physician’s Orthopedic Conference, where she saw a new hip joint replacement demonstrated. She decides she wants to start using the replacement joint at Arnold Palmer Hospital. What process will Dr. Smith have to go through at the hospital to introduce this new product into the supply chain for future surgical use?
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