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Paramount Health Authority - Overview Paramount Health Authority (PHA), through their 50,000 staff, is responsible for the delivery of health programs and services. With regional budgets in excess of $2.8 billion, this diverse health organization operates 20 acute care hospitals and serves over 2 million people per year. Other Highlights Our business analysts recently conducted research relating to the three categories and the industry. Below are highlights on the research conducted. Historically, all 3 categories (Cardiac", "Spinal" and "Patient Beds \& Transport Products") have commonly been purchased by different clinical teams across the various hospitals within PHA Many of the purchases are made on an ad-hoc basis; supplier sales representatives are often fulfilling numerous order quantities across the hospitals. Peter's team has recently determined that most of the spend within these categories are "off contract spend" (prices of products sold are not govemed by a contract). PHA's suppliers relating to these categories are all qualified with capabilities more than large enough to fulfill PHA's supply requirements. In fact, our analysts say that these suppliers are large enough to service the entire country. Therefore, each supplier (within their respective category) is a candidate for servicing PHA. This industry is comprised of an immense aging population that continues to bring significant economic challenges to govemments who fund health care. Our country will continue to experience increased health care costs for almost every known purchasing category. For example, the share of the population aged 65 and over was 18 percent last year, its going to almost double within the next 15 years. PHA's operating budget (including funds for annual purchasing expenditures) is considered significantly larger than most of the other heath authorities in the country and North America. Peter's procurement team has traditionally issued very few RFx's (RFP, RFI, RFQ) in past. In addition, many prices were set without negotiating with suppliers. Although costs to change-out incumbent suppliers are not high, strong physician preferences for supplier products in the Cardiac and Spinal categories are pervasive across PHA. Physicians \& head nurses have forecasted a 10% increase in total volumes for next year. (within their respective calegory) is a candidate for servicing PHA purchasing category. For example, the share of the population aged 65 and over was 18 percent last year, its going to almost double within the next 15 years. Peter's procurement team has traditionally issued very few RFX's (RFP, RFI, RFQ) in past. In addition, many prices were set without negotiating with suppliers. Physicians & head nurses have forecasted a 10% increase in total volumes for next year. Purchasing Data tab and even provided summary tables (see Appendix 1 and 2). You may need to further manipulate the data in order to complete your analysis and develop strategy. Client Deliverables The following is required to be delivered: The memo should address the following: why? he consider adopting and why)? Appendix 1 - Total Cost by Vendor Table II: Patient Beds \& Transport Products JRMEDICAL SUPPLIES LANG SUPPLIES $1,861 LAURELO $297 LOFENCE FFD $217346 MEDI 55 55,018 OB1 HEALTHLTD 57,970 ORTOZEE INC 518.108 FOEEY MED DOF= 14076 SK 4 PADDUCTS 122206 MCTOF BAL-Y 1768 WDODY ODFP 006.62 Grand Totisl 57.366,6168 Tabie 2: ctarilobses Vendors Tota a arst (1) \begin{tabular}{lc} PJ MEDICAL PRODUCTS INC. & $2,233,328 \\ \hline Grand Total & $4,352,815 \\ \hline \end{tabular} Table 3: Spinal \begin{tabular}{lc} Vendors & Total Cost \\ \hline BILLINC & $11,899 \end{tabular} DF GOODROE $1,782,648 FORESTER OF CANADALTD $390,134 GG 7 CORP $8,556,941 PJ VED CALPRODUCTS INC. $2,370,140 TOMKYY MEDICAL Grend Total $13,146.734 Cardiologg. Spinat: Considerations Current costs by category \& top vendors - Number of vendors (optimal?) - Projected annual savings - Other benefits? - Should Peter consider partnering with other HA's? If so, which (if any) categories (level 3/category desc) should Peter consider? Why? Current costs by category \& top vendors - Current costs by category \& top vendors - Number of vendors (optimal?) - Projected annual savings - Other benefits? - Should Peter consider partnering with other HA s? If so, which (if any) categories (level 3/category desc) should Peter consider? Why? Considerations (cont.) Implications of off-contract spend; ad-hoc purchases by varying clinical teams, etc... - Should reverse auction be used? If so, for what? Implications of off-contract spend; ad-hoc ourchases by varying clinical teams, etc... Should reverse auction be used? If so, for what? Considerations (cont.) - What impact (if any) does the industry trend have on future demand \& supplier pricing? - Strong physician preferences - how does this affect your recommendation? - Is there supplier overlap? If so, how can PHA use this insight to their advantage? Paramount Health Authority - Overview Paramount Health Authority (PHA), through their 50,000 staff, is responsible for the delivery of health programs and services. With regional budgets in excess of $2.8 billion, this diverse health organization operates 20 acute care hospitals and serves over 2 million people per year. Other Highlights Our business analysts recently conducted research relating to the three categories and the industry. Below are highlights on the research conducted. Historically, all 3 categories (Cardiac", "Spinal" and "Patient Beds \& Transport Products") have commonly been purchased by different clinical teams across the various hospitals within PHA Many of the purchases are made on an ad-hoc basis; supplier sales representatives are often fulfilling numerous order quantities across the hospitals. Peter's team has recently determined that most of the spend within these categories are "off contract spend" (prices of products sold are not govemed by a contract). PHA's suppliers relating to these categories are all qualified with capabilities more than large enough to fulfill PHA's supply requirements. In fact, our analysts say that these suppliers are large enough to service the entire country. Therefore, each supplier (within their respective category) is a candidate for servicing PHA. This industry is comprised of an immense aging population that continues to bring significant economic challenges to govemments who fund health care. Our country will continue to experience increased health care costs for almost every known purchasing category. For example, the share of the population aged 65 and over was 18 percent last year, its going to almost double within the next 15 years. PHA's operating budget (including funds for annual purchasing expenditures) is considered significantly larger than most of the other heath authorities in the country and North America. Peter's procurement team has traditionally issued very few RFx's (RFP, RFI, RFQ) in past. In addition, many prices were set without negotiating with suppliers. Although costs to change-out incumbent suppliers are not high, strong physician preferences for supplier products in the Cardiac and Spinal categories are pervasive across PHA. Physicians \& head nurses have forecasted a 10% increase in total volumes for next year. (within their respective calegory) is a candidate for servicing PHA purchasing category. For example, the share of the population aged 65 and over was 18 percent last year, its going to almost double within the next 15 years. Peter's procurement team has traditionally issued very few RFX's (RFP, RFI, RFQ) in past. In addition, many prices were set without negotiating with suppliers. Physicians & head nurses have forecasted a 10% increase in total volumes for next year. Purchasing Data tab and even provided summary tables (see Appendix 1 and 2). You may need to further manipulate the data in order to complete your analysis and develop strategy. Client Deliverables The following is required to be delivered: The memo should address the following: why? he consider adopting and why)? Appendix 1 - Total Cost by Vendor Table II: Patient Beds \& Transport Products JRMEDICAL SUPPLIES LANG SUPPLIES $1,861 LAURELO $297 LOFENCE FFD $217346 MEDI 55 55,018 OB1 HEALTHLTD 57,970 ORTOZEE INC 518.108 FOEEY MED DOF= 14076 SK 4 PADDUCTS 122206 MCTOF BAL-Y 1768 WDODY ODFP 006.62 Grand Totisl 57.366,6168 Tabie 2: ctarilobses Vendors Tota a arst (1) \begin{tabular}{lc} PJ MEDICAL PRODUCTS INC. & $2,233,328 \\ \hline Grand Total & $4,352,815 \\ \hline \end{tabular} Table 3: Spinal \begin{tabular}{lc} Vendors & Total Cost \\ \hline BILLINC & $11,899 \end{tabular} DF GOODROE $1,782,648 FORESTER OF CANADALTD $390,134 GG 7 CORP $8,556,941 PJ VED CALPRODUCTS INC. $2,370,140 TOMKYY MEDICAL Grend Total $13,146.734 Cardiologg. Spinat: Considerations Current costs by category \& top vendors - Number of vendors (optimal?) - Projected annual savings - Other benefits? - Should Peter consider partnering with other HA's? If so, which (if any) categories (level 3/category desc) should Peter consider? Why? Current costs by category \& top vendors - Current costs by category \& top vendors - Number of vendors (optimal?) - Projected annual savings - Other benefits? - Should Peter consider partnering with other HA s? If so, which (if any) categories (level 3/category desc) should Peter consider? Why? Considerations (cont.) Implications of off-contract spend; ad-hoc purchases by varying clinical teams, etc... - Should reverse auction be used? If so, for what? Implications of off-contract spend; ad-hoc ourchases by varying clinical teams, etc... Should reverse auction be used? If so, for what? Considerations (cont.) - What impact (if any) does the industry trend have on future demand \& supplier pricing? - Strong physician preferences - how does this affect your recommendation? - Is there supplier overlap? If so, how can PHA use this insight to their advantage