Possible Solutions Pacific Healthcare Essay

Possible Solutions Pacific Healthcare Essay

Technology development is one of the main drivers of effective and manageable health care in the United States. With different options offered by health care supply companies for X-Ray departments, managers need to consider different aspects, namely: cost, consistency, reliability and quality. The below overview will analyze three possible solutions to make the health care service more effective and the running costs lower.Possible Solutions Pacific Healthcare Essay.

Possible Solutions.

While previously there was no other option than using Kodak’s services for supplies and maintenance. While there are four other companies offering the same service at a lower price, only two of them match the quality of Kodak products.

Option 1. Continue to use Kodak, entering into negotiation with the company in order to obtain higher discounts as a reward for continuous business. Further, it would be possible to obtain extra service and support from Kodak, based on the long term collaboration between the supplier and the X-Ray unit.

Option 2. Opt for DuPont and Agfa by entering negotiation and requesting a quote. Comparing the two options, service and quality assurance levels before making a decision. This way the quality of service would be consistent, however, DuPont price per unit is lower.

Option 3. Choosing the lowest cost option, as minimum quality requirements are still met by 3M, and the unit price is 45 cents below Kodak’s. This means that the department would save 645 dollars a day in operations expenditure.

Difference in costs, savings and quality

Option 1. Continuing to use Kodak products would create consistency in the department, would not require training and changes in the equipment. Possible Solutions Pacific Healthcare Essay. However, it is not likely that Kodak as a leading supplier of the market would enter a price competition and reduce the monthly package and sheet prices significantly. The costs would remain more or less the same, while the quality would be consistent with previous services.

Option 2. Choosing between DuPont and Agfa would reduce the cost of supplies, and possibly the services as well. However, it is not known how the changes would affect the cost of training, equipment maintenance and services. Without knowing how much the two companies charge for servicing and maintenance, it would be unwise to opt for this solution.

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Option 3. Choosing the lowest cost solution, namely 3M would save a significant amount in the X-Ray department and supplies would be obtained at a lower price. As the quality of the films is still accepted and above the industry quality requirements, there seems to be no risk. However, the compatibility of equipment and retrieval machinery is questionable. Further, quality standards are determined based on general terms and therefore, testing would be required in order to decide whether the quality of sheets is suitable for the imaging carried out in the department. This would, consequently result in training and testing costs.

Advantages and Disadvantages

Advantages and Disadvantages

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
That is a huge saving for Pacific Healthcare. Pacific Healthcare can save money as well as keeping the same high quality as Kodak. Possible Solutions Pacific Healthcare Essay.

IV. Choice and Rationale

After reviewing all of the possible choices I chose to go with choice A. I chose A, because it saves Pacific Healthcare a lot of money as discussed in choice C. By choosing DuPont the company would save $450 a day compared to Kodak. That is $3,150 per week of savings and $12,600 a month by switching to DuPont. Also in choosing Agfa which is the same quality as Kodak, Pacific Healthcare would save $330. Keep in mind that Agfa and DuPont have the same quality as Kodak. Why choose Agfa over DuPont if they have the same quality of X ray film? That is why I chose DuPont. It is a smart solution, because it saves Pacific Healthcare money while also keeping the same quality as Kodak. Moving on two the other choices Mr. Rubble has. In the beginning I mentioned that there were four competitors that offered X ray films at a much lower rate than Kodak. The competitors were Agfa, DuPont, Fugi, and 3M. I have discussed Agfa and DuPont. The reason for not adding Fugi and 3M to my possible solutions is because Pacific Health care wanted to keep the same high quality in X ray film. Even though Fugi and 3M met minimum requirement they were thought of as having lower quality. Pacific Healthcare was looking for obtaining the highest quality with the best service . Possible Solutions Pacific Healthcare Essay.

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