PACIFIC HEALTHCARE CASE STUDY 1

Pacific Healthcare

American Public University System

Professor Wade Keith

Pacific Healthcare:

I. Major Facts

Mr. Howell, the director of radiology for Pacific Healthcare has passed away. He was in charge of the supplier section of X ray film. Mr. Howell would not authorize the use of any X ray film other than Kodak. Barney Rubble is the corporate director of supply management for Pacific. He is in charge of buying supplies for all of the Pacific Healthcare Subsidiaries. Mr. Rubble will be Mr. Howells replacement. He now has the opportunity to authorize the use of any X ray film other than Kodak. An investigation was complete in where Mr. Rubble had a reason to believe that the current Kodak price was above that of possible competition. There was an existing agreement with Kodak calls for furnishing X ray equipment along with maintenance and service, at a considerable discount for using Kodak as a single supplier of the X ray film. Kodak refused to provide those services if they were not their only source for X ray film.

II. Major Problem

Kodak has been Pacific HealthCare’s main supplier for X ray film. Now that Mr. Howell has pasted it is Mr. Rubbles’ responsibility to either decide to keep the Kodak for the X ray film or change to a different X ray film supplier. What needs to be kept in mind is that Kodak was also offering Pacific Healthcare discounts for furnishing X ray equipment along with maintenance and service. This was all because they were their only X ray film supplier. If Pacific Healthcare switches to a different X ray film supplier they will lose those disc...

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