Pacific Healthcare

Pacific Healthcare According to Burt, "Pacific Healthcare and its subsidiaries with Pacific Cabrillo, Pacific Memorial, and Pacific Isla Vista, is the biggest healthcare provider in the Santa Barbara County with over 1,500 beds"( Supply management). Barney Rubble is the director of supply management for Pacific Healthcare and the director of radiology. For the past 15 years, Mr. Howell handle all the X-ray films for Pacific Healthcare. He decline the use of any other provider but Kodak because of their quality and services they offered. Other X-ray providers like Agfa and Dupont are two others suppliers that offers cheaper prices than Kodak with the same picture quality but does not offer a service and maintenance contract. Fuji and 3M is cheaper band and meet specification but their quality is considering lower films and they do not offer a services and maintenance contract as well. Mr. Rubble has the option to stay with Kodak because of their quality and services, or move on to a different provide, but lose out on quality and services but gain saving in his department. The major problem is that Kodak has been over charging Pacific Healthcare for X-ray sheets over the past 15 years, even though Kodak has giving Pacific Healthcare a discount on service and maintenance for being the sole provider. Other companies like 3M, Dupont, Fiji, and Agfa produces the same X-ray film sheet that Kodak offer but at a cheaper price. Kodak films are $1.80, Agfa are $1.50, Fuji $1.40, and 3M at $1.35 a sheet. Mr. Rubble would like to find a single source supplier for a one contract, but he has to ask himself should he stick with Kodak or chose to go with another supplier. He would save money if he would switch provider, but would that be beneficial for his company and subsidiaries success. Mr. Rubble has options to consider. One being continue using Kodak as a single source provider, because of their quality and services contract. Pacific's have never experience any wrong