Description
You are the Chief Financial Officer (CFO) of Virginia Mason Medical Center. It is now 2017 and Virginia Mason has been in partnership with Owens & Minor for 13 years. You are conducting a review of the partnership for the Board. In particular, they have asked you to assess whether the project met Virginia Mason’s three (3) major goals in creating the partnership: better control of costs, an improved supply chain, and a better patient experience.
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Running Head: SUPPLY CHAIN PARTNERS
Supply Chain Partners: Virginia Mason and Owens & Minor
Name
Institutional Affiliation
Date
1
SUPPLY CHAIN PARTNERS
2
Virginia Mason and Owens & Minor Partnership
Virginia Mason (VM) and Owens & Minor partnered with the aim of creating a system
that would reduce waste, increase efficiency and battle the ever-increasing healthcare costs.
Virginia Mason which is a private non-profit organization in Seattle offered specialized care and
clinical operation networks. O&M intentions were to reduce healthcare costs through
implementing systems by developing an Activity-Based Cost system in partnership with VM.
The resulting system created was known as the Total Supply Chain Cost (TSCC). The system
uncovers hidden costs that were omitted in previously used systems. The system has the ability
to generate all fees that are generated from the supply chain, reducing waste and increasing
efficiency hence making the process more profitable. The two organizations strategies were
aligned such that they both wanted to increase efficiency in the supply chain resulting in better
care and reduc...