...Health Care Supply Chain The developments in health care encompassed vertical and horizontal integration, managed care pressures, and the rise of e-commerce. There have also been many other changes, few of them are: Hospitals and hospital systems vertically integrated into the health insurance business, such as starting up their own Health Maintenance Organizations (HMOs) and ambulatory care practices, in the process of developing Integrated Delivery Networks (IDNs). Attempts to integrate downstream towards the patients to capture a greater portion of patient flows and insurance premiums lead to the development of HMOs. Initially such attempts were futile and providers had to integrate upstream with the wholesalers and distributors to improve their financial position. Every major player along the value chain horizontally consolidated to form large organizations. Hospitals merged to form hospital systems or joined other systems. Group purchasing organizations (GPOs) started catering to different systems and distributors started building warehouses where demands from various systems are consolidated. A typical healthcare supply chain is a complex network consisting of many different parties at various stages of the value chain. The three major types of players are: Producers (product manufacturers), Purchasers (group purchasing organizations, or GPOs, and wholesalers/distributors), and health care providers (hospital systems and integrated delivery networks, or IDNs). This chain...
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...Hospital Glove Supply Chain Proposal OPS HC 571 December 8, 2014 Hospital Glove Supply Chain Proposal The creation and introduction of a material and process plan to address a new, Chinese vendor provides the opportunity for growth and development of the hospital. Issues surrounding reliable, consistent delivery of gloves created the need for change; however, this change requires planning, strategy, and implementation. This paper plans to highlight the necessary steps to consider while entertaining the concept of a new glove vendor including process evaluation, financial forecasting, and resource planning systems. Materials Requirement Plan Healthcare organizations can adopt current manufacturing processes such as materials requirement planning (MRP) to create a more efficient and descriptive usage pattern for materials. MRP utilizes a data and technology driven system to estimate demand from end-users to allocate the organization’s resources appropriately. This hospital is evaluating the usage of hospital gloves as well as the prospect of inviting a new source from China. Utilizing data hard points such as past ordering history, fluctuations in treatments of patient (i.e. seasonal variations, etc.), and growth patterns of the hospital may contribute to an effective model and plan for the new supply chain (Tomas, 1990). For this materials requirement plan, the initial data to capture is, “what is needed to keep the hospital functioning today?” This...
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...A Financial Breakdown Of Hospital Supply Inc This case is comprised of various situations that deal with behavioral costs in order to maximize profits. The use of break-even analysis and opportunity cost is used along with recognizing and using the fixed and variable cost. The Hospital Supply, Inc. case is where they manufacture hydraulic hoists and have a normal volume of 3,000 units per month. Using a break-even analysis the determination of the sales volume and prices will reveal what the company will need to profitably sell its product. There are also scenarios given to determine which options to take to maximize profit or at least minimize loss. Exhibit 1 displays the cost per unit for hydraulic hoists and will provide the information needed to determine how Hospital Supply Inc. can maximize its profit in the following various scenarios. Part one is to determine both the break-even volume in units and in sales dollars. First we need to add all the variable costs per unit = $550 + $825 + $420 + $275 = $ 2,070 and fixed costs per unit = $660 + $770 = $1,430. Given information within the problem include: Normal volume = 3,000 units Regular selling price = $4,350 To find total fixed cost = 3,000 units *$1,430/unit = $4,290,000 By taking the regular selling price and subtract the variable cost per unit gives the unit contribution: = price/unit – variable cost/unit = $4,350 - $2,070 = $2,280 Contribution percent = $2,280/$4,350 = 0.524138 - Break-even...
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...I. PROBLEM City Hospital Supplies, Inc. is faced with the means to develop the Philippine market for the three product lines of Sneider Company for its startup operations. II. SWOT ANALYSIS STRENGTHS • Limited liability of owners The shareholders are not personally liable for corporate acts and debts. This means that in case of liquidation of the company, if the company's assets are insufficient to meet the liability, nothing is required to be contributed by the owners. Only the owners' contribution is at stake rather than their personal assets. • Raising capital is easy as approved by stockholders The company’s form of business organization, corporation, makes possible the raising of large amounts of money from large number of persons. As for City Hospital Supplies, Inc., four other friends of the incorporators would be invited to put in token investments in the firm. • Exclusive distributorship agreement with Sneider Company The company had just been awarded the exclusive distributorship in the Philippines for the Sneider line of hospital supplies by the Regional Marketing Director for Asia of the Sneider Company based in West Germany. An agreement followed after months of negotiations. This is an advantage over other companies in the Philippines. • Good pricing strategy Positioning the Sneider lines about 15-20% lower than the competition would help capture a major share of local market. • Location...
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...Hospital Supply Inc. CASE ANALYSIS PRESENTED BY GROUP 1: PAT R I C I A C O, A N D R H EA A R N U C O, RO B M I C L AT, S H I E N E L M UJA R D E L A SA L E U N I V E RS I T Y - M BA Background of the Case Hospital Supply, Inc. produced hydraulic hoists that were used by hospitals to move bedridden patients. The cost of manufacturing and marketing hydraulic hoists at the company’s normal volume of 3,000 units per month are shown in Table 1: Table 1: Cost per Unit for Hydraulic Units Unit manufacturing costs: Variable materials Variable labor Variable overhead Fixed overhead Total unit manufacturing costs Unit marketing costs: Variable Fixed overhead Total unit marketing costs Total unit costs $550 $825 $420 $600 $2,455 $275 $770 $1,045 $3,500 Background of the Case Selling price is $4,350 per unit, based on the company’s normal volume of 3000 units. Problem Statement Hospital Supply Inc. has an opportunity to increase its profits with the following course of actions: •Cutting the selling price. •Accepting a contract offer from the federal government. •Entering a foreign market. •Partnering with an outside contractor. Objective The objective of this case is to recommend which among the opportunities should Hospital Supply Inc. take in order to become more profitable. Areas to Consider: Break-Even Analysis First, it is important to determine the breakeven volume based on the company’s current costs and...
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...determine the financial areas of concern in the case? Peter Butler should examine first the financial statement of the hospital and look for any red flags that may give him the clue on why the hospital is experiencing cash flow crisis, where the problem lies and have a better understanding. Second, he should look for any options that he can use to help him to make major decisions on the financial areas of concern. Third, convince the CEO and the board of trustees of the best option/s that they can implement in the coming year to make the hospital in black position and have enough cash flow to make the necessary improvement, be more competitive and attract more physicians and patients. 2. What risks issues are involved in using the various options to meet immediate cash needs?...
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...Uses of Computers in Hospitals The increasing population levels in our country and around the world means that doctors and hospitals have more patients than ever before. The advances in technology, such as the use of computers, fortunately allow the hospital staff to handle larger workloads and accommodate the increased need for their services. Computer and its peripherals are used extensively nowadays in hospitals for many purposes, as given below. 1. Medical Record Keeping : Electronic databases house information about patient medical histories, billing and payment records and insurance coverage. Computers allow hospital employees to manage this information efficiently, while limiting the use of paper and space needed to store hard copies of information. 2. Supply Inventory and Ordering : Inventories of hospital supplies can be tracked using computer systems that alert employees to the need to place a new order. This makes the management of hospital supplies practical and efficient. 3. Diagnostics: Doctors who work in laboratory settings frequently come across diseases and harmful agents that are difficult to diagnose. Doctors can set parameters in computer databases to assist them in diagnosing a condition in remote mode. 4. Research : Doctors use computers to conduct research on a patient's conditions or continue their own education. For instance, doctors can go to medical journal databases online to find out about ground-breaking research for a particular...
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...including hospitals, clinics, laboratory and diagnostic facilities, pharmaceutical retailers and distributors, and medical education and training institutes. Each is characterized by distinct factors to consider when appraising credit and investment worthiness. A discussion follows of success factors and common mistakes that investors see in financing requests from each of these types of businesses. The box on this page describes one banker’s experience with health-sector borrowers in Uganda. Hospitals Key Elements for Analysis: Typically private hospitals earn revenue from inpatient and outpatient services, surgical procedures, diagnostic testing (laboratory and radiology), and drug sales. The number of beds defines the inpatient capacity, and bed occupancy rate and average length of stay are key metrics for determining inpatient numbers (a key revenue driver). Similarly, outpatient numbers and consultation fees drive outpatient revenue. Key profit centers are usually surgical procedures, diagnostic tests, and drug sales, rather than room rates and consultation fees. Because of the equipment and facility requirements, hospitals are generally much more capital intensive than clinics and need to replace and modernize equipment regularly. Salaries tend to be a significant operating expense. Staffing-topatient ratios can be indicators of quality, efficiency, and cost control. The text box on the next page lists some common benchmarks or rules of thumb for analysis of hospital investments...
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...verse my job now at the hospital on the medical (fifth) floor. I recognize similar characteristics. Although Happy Hour and the hospital operate in distinctly different ways, their functions overlap when it comes to daily responsibilities. The staff members at Happy Hour vary compared to Memorial Health Care Center. The former usually consists of eight employees, whereas, the latter consists of a whole building full of people working together to get the job done. Even though the number of individuals is greater, they still perform the same basic tasks. At the restaurant, the workforce consists of the following: two cooks, a pizza person, a buffet runner, a dishwasher, a bartender, and two waitresses. Known by different job titles, Memorial employs similar workers. In a sense, room service personnel act as waiters because they take meal orders and deliver the cookery to various rooms. Along with the previous staff, maintenance, nurses, doctors, aids, and lab...
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...February 5, 2012 Russel Flippo Southwestern College Professional Studies Week 5 Assignment 2 LAYING OUT ARNOLD PALMER HOSPITAL’S NEW FACILITY 1. Identify the many variables that a hospital needs to consider in layout design. There are many different variables that a hospital needs to consider when developing a layout design. Among those variables is the specialty of the hospital – does there need to be a lot of operating rooms, or will the hospital deal with more trauma or specialized areas. The flow of personnel, equipment and materials is of upmost importance when considering the layout. How easily will nurses and doctors get to the patients, and how much time will it take them to go from point “A” to point “B”? A hospital tends to be more process oriented and, therefore; should be designed as such. Work cells provide the ability for personnel to perform certain functions in one specific place. Another variable that hospitals need to consider in layout design is the family of the patient. Patients will have visitors – some more than others – and they must be able to have privacy and be able to visit with their loved one in a comfortable setting. 2. What are the advantages of the circular pod design over the traditional linear hallway layout found in most hospitals? One of the advantages of the circular pod design is that it keeps the work cells closer to the patients. The pod design allows for one centralized place for nurses and doctors to work from...
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...The home health nurse worked for a separate group from the TPN provider and came with her own supplies. The patient supplies were delivered by a different supplier and turned out to be different from what the nurse expected; the supplies that were provided were not always complete and it was difficult to get consistency. At the time, it was all very confusing and frustrating, verging on the overwhelming. The majority of the responsibility for coordinating future supplies fell on the patient and caregiver, which was very difficult because we were confused and ill-prepared to deal with the complexities involved. Once the home health nurse had connected Lynn to the TPN, she left and we were left to the confines of our home, but to Lynn, it did not feel like our home anymore—it felt like a hospital room, with hospital supplies and a refrigerator full of more hospital supplies. At one point, Lynn had a hospital IV pole and pump, which she had to wheel around her two-story home. Even when more portable pumps became available, it was very scary(can we use another word daunting or something) to leave...
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...EXECUTIVE SUMMARY — Despite a pressing need to do so, hospitals are struggling to improve efficiency, quality of care, and patient experience. Operational failures—defined as instances where an employee does not have the supplies, equipment, information, or people needed to complete work tasks—contribute to hospitals' poor performance. Such failures waste at least 10 percent of caregivers' time, delay care, and contribute to safety lapses. This paper seeks to increase hospital productivity and quality of care by uncovering organizational factors associated with operational failures so that hospitals can reduce the frequency with which these failures occur. The authors, together with a team of 25 people, conducted direct observations of nurses on the medical/surgical wards of two hospitals, which surfaced 120 operational failures. The team also shadowed employees from the support departments that provided materials, medications, and equipment needed for patient care, tracing the flow of materials through the organizations' internal supply chains. This approach made it possible to discover organizational factors associated with the occurrence and persistence of operational failures. Overall, the study develops propositions that low levels of internal integration among upstream supply departments contributed to operational failures experienced by downstream frontline staff, thus negatively impacting performance outcomes, such as quality, timeliness, and efficiency. Key concepts include: ...
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...Task 1(A) Global Marketplace Activity (A1) Being the largest hospital corporation in the world, with over 160 hospitals, 100 surgical clinics, and a never ending amount of specialty facilities, supplies are an essential component to the successful day to day operations. In the event that those supplies were not able to be delivered on time, the possibility of not being able to provide properly for our patients would be immense. And with the company receiving certain supplies from all over the world, it is very possible that due to measures beyond the hospital corporations control or the supplying company that delivery of supplies could be delayed due to inclement weather, natural or manmade disasters. This in turn could have a substantial impact to the quality of care provided and received. In addition, the hospital corporation is also a key component to several ongoing research projects for treatment, cures and vaccinations for various diseases and infections, all of which rely on the supplies provided by other research facilities or specialty supplies provided by specific supply companies who could be impacted by these potential disasters, which would debilitate and prolong the success of the research projects effected. Risk Source (A2) The source for the first risk identified would be nothing more than age and continual use. The boiler at the Disaster Recovery site is the original boiler for the building which is approximately 50 years old, and even though the...
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...acting assistant surgeons, uncommissioned and working under contract, often on a part-time basis. They could wear uniforms if they wished and were usually restricted to general hospitals away from the fighting front. The Confederate Army began by taking the several state militias into service, each regiment equipped with a surgeon and an assistant surgeon, appointed by the state governors. The Confederate Medical Department started with the appointment on May 4 of Daniel De Leon, one of three resigned United States surgeons, as acting surgeon general. After a few weeks he was replaced by another acting surgeon general, who on July 1,1861, was succeeded by Samuel Preston Moore. He took the rank of colonel and stayed on duty until the collapse of the Confederacy. Dr. Moore, originally a Charlestonian, had served twenty seven years in the United States Army. He has been described as brusque and autocratic, a martinet. He was also very hard working and determined, and he was progressive in his military-medical thinking. Dissatisfied with the quality of many of the surgeons of the state troops, he insisted that to hold a Confederate commission, every medical officer must pass examinations set by one of his examining boards. He disliked filthy camps and hospitals. He believed in "pavilion" hospitals-long, wooden buildings with ample ventilation and sufficient bed space for eighty to one...
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...3/26/09 Case 4 Better Care Clinic (Breakeven Analysis) Fairbanks Memorial Hospital, an acute care hospital with 300 beds and 160 staff physicians, is one of 75 hospitals owned and operated by Health Services of America, a for-profit, publicly owned company. Although there are two other acute care hospitals serving the same general population, Fairbanks historically has been highly profitable because of its well-appointed facilities, fine medical staff, and reputation for quality care. In addition to inpatient services, Fairbanks operates an emergency room within the hospital complex and a stand-alone walk-in clinic, the Better Care Clinic, located about two miles from the hospital. Todd Greene, Fairbanks’s chief executive officer (CEO), is concerned about Better Care Clinic’s financial performance. About ten years ago, all three area hospitals jumped onto the walk-in-clinic bandwagon, and within a short time, there were five such clinics scattered around the city. Now, only three are left, and none of them appears to be a big money maker. Todd wonders whether Fairbanks should continue to operate its clinic or close it down. The clinic is currently handling a patient load of 45 visits per day, but it has the physical capacity to handle more visits—up to 60 per day. Todd has asked Jane Adams, Fairbanks’s chief financial officer, to look into the whole matter of the walk-in clinic. In their meeting, Todd stated that he visualizes two potential outcomes...
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