Strategic Management of the Health Care Supply Chain

Larry R. Smeltzer was professor of supply chain management at the W. P. Carey School of Business, Arizona State University. His primary research focus was supply strategies, and his work was published in such journals as Supply Chain Management Review, European Journal of Purchasing and Supply Management, IEEE Transactions on Engineering Management, and Sloan Management Review. He also published descriptions of best practices through the Center of Advanced Purchasing Studies. Smeltzer received his Ph.D. in business from Northern Illinois University in 1980 and a master’s degree in organizational science from the University of Nebraska in 1971. Eugene S. Schneller is professor of health management and policy at the W. P. Carey School of Business, Arizona State University. He is director of the Health Sector Supply Chain Initiatives and codirector of the Health Sector Supply Chain Research Consortium. Schneller is a frequent speaker on issues pertaining to group purchasing organizations and strategic management of the health care value chain. His publications appear in a variety of health management journals, including Hospital and Health Services Administration, Health Care Management Review, American Journal of Public Health, Social Science and Medicine, and Frontiers of Health Services Management. He received his Ph.D. from New York University in 1973 and an honorary P.A. degree from Duke University Medical Center in 2004.

Foreword vii
Lawton Robert Burns Preface ix

Acknowledgments xiii

The Authors xix

Introduction: A Burning Platform for Change 1

1. Framing and Repositioning Management of the Health Care Supply Chain 25

2. Managing Supply Risk and Cost Reduction 44

3. Internal Customer Relationship and Performance Management 70

4. Group Purchasing Organizations: Shaping the Health Materials Marketplace 100

5. Inventory and Distribution Process: The Search for Strategy 125

6. Organizational Design for Hospital and Health Care System Supply Chains 155

7. Levels of Development for the Health Care Supply Chain 175

8. Building Supply Chain Leadership and Resources for the Future 196

Study 1: The Value of Group Purchasing in the Health Care Supply Chain 213

Study 2: Clinician, Supplier, and Buyer Working as One to Improve Patient Outcomes 229

Study 3: Metropolitan Hospital System—A Study of a Hybrid Organizational Design 257

Study 4: Office of Inspector General Advisory Opinion No. 05–06, February 2005 263

Notes 277

Index 299