Healthcare Organizations Face Multiple Challenges

Healthcare Organizations Face A Multitude Of Challenges Wh

Healthcare organizations face a multitude of challenges when it comes to documenting and tracking supplies that come and go through a facility (Carr, Pilch, & Shill, 2016). When William Clark joined McCovey Medical Center as the Chief Operating Officer (COO), one of his first orders of business was to study the organization’s structure, distribution of departmental responsibilities, and allocation of resources to see if there were any opportunities to better control operating costs. While touring the facilities, Mr. Clark encountered a situation which caused him great concern. In a maintenance warehouse located near Central Supply, several dozen large cartons of paper products and other office supplies were being stored on industrial shelves along the back wall.

Mr. Clark sought to determine the team ultimately responsible for the supplies and why the supplies were not stored in a more appropriate setting (e.g., inside the main building). Since the supplies were stored near Central Supply, Mr. Clark made that his first stop. The manager of Central Supply stated that the supplies belonged to the Purchasing Department and were there due to limited space availability in their own storeroom.

Since the supplies had been undisturbed for several months, it was assumed that it was probably a case of over-ordering. Mr. Clark next visited the Purchasing Department where he asked the manager about the supplies being stored in the maintenance warehouse. He was informed that it all actually belonged to Central Supply and that since they don’t know what to do with any of it their manager stuck everything on a shelf in the warehouse. Mr. Clark’s investigation eventually hit a dead end when he could not locate any documentation that might tell him to which department the supplies belonged. The purchase orders and accounting’s records of payments were all on file; however, the purchase requisitions had been only partially completed. In fact, there were no signatures on any of the paperwork and the receiving copies of the purchase orders were nowhere to be found. Mr. Clark determined that the paper products represented a 10-year supply.

In total, the “orphan supplies” represented several thousands of dollars in inventory that no department claimed. Based on the attached scenario, answer the following questions (derived from McConnell, 2019): 1. What are the systemic problems Mr. Clark has uncovered? 2. What can be said about the state of departmental authority versus individual responsibility in the case of the orphan supplies? 3. What would it take to create systemic change on this issue? 4. What are some strategies that can be put in place to prevent such spending in the future? 5. What do you recommend Mr. Clark do with the orphan supplies? Explain your rationale.

Paper For Above instruction

The scenario presented at McCovey Medical Center illustrates critical systemic issues related to inventory management, accountability, and organizational accountability within healthcare institutions. William Clark’s discovery of the orphan supplies highlights the complex failures that occur when there is insufficient oversight and poorly defined responsibilities across departments. This situation emphasizes the need for a comprehensive, system-wide approach to managing supplies, ensuring accountability, and preventing future financial losses.

Systemic Problems Uncovered

The primary systemic problem apparent in Mr. Clark’s investigation is the lack of effective inventory control and documentation procedures. The storage of supplies without clear ownership, coupled with incomplete purchase requisitions, indicates a broader failure in procurement and inventory management systems. This deficiency results in supplies being unclaimed, poorly tracked, and effectively abandoned—referred to as “orphan supplies.” Additionally, the absence of signatures, complete purchase orders, and accurate receiving records underscores a failure in accountability mechanisms. Without proper oversight, supplies can become obsolete, overstocked, or, as in this scenario, held in storage for years without organizational recognition or responsibility.

Departmental Authority vs. Individual Responsibility

The case highlights a blurred line between departmental authority and personal responsibility. The Purchasing Department claimed the supplies belonged to them but lacked control over where supplies were stored or how they were tracked once purchased. Meanwhile, the Central Supply manager attributed ownership to Purchasing, but due to limited space and lack of oversight, supplies were moved to a warehouse without formal transfer procedures. This ambiguity fosters a blame-shifting culture where no department takes complete ownership of the inventory. The absence of signed requisitions and complete documentation further reflects a breakdown in individual accountability. This disconnect weakens organizational governance and hampers efforts at effective resource management.

Creating Systemic Change

Achieving systemic change requires an integrated approach that emphasizes the development and enforcement of policies, staff training, and technological support systems. Implementing centralized inventory management software can provide real-time tracking, reduce manual errors, and enhance transparency. Standardized protocols for purchase requisitions, approvals, and receipt documentation must be established and enforced across all departments. Leadership commitment is essential to foster a culture of accountability, complemented by regular audits to identify discrepancies early. Furthermore, creating clear delineation of responsibilities and accountability matrices ensures each department understands its role, reduces ambiguity, and prevents recurrence of orphan supplies. Training staff on best practices in supply chain management, along with continuous performance evaluations, can reinforce organizational reforms.

Strategies to Prevent Future Incidents

To prevent similar incidents, healthcare organizations should develop robust inventory control policies, including automated tracking systems linked to procurement processes. Enforcing periodic audits and reconciliation activities helps identify surplus or misplaced supplies proactively. Establishing clear thresholds for overstocking and specifying disposal procedures for obsolete inventory can mitigate excess accumulation. It is also vital to create a culture of accountability, where staff at all levels are responsible for accuracy in documentation and inventory management. Conducting regular staff training seminars on policies and procedures and incentivizing compliance can strengthen organizational norms. Additionally, fostering interdepartmental communication ensures awareness of inventory status, reduces duplication, and aligns procurement with actual needs.

Recommendations for Mr. Clark Regarding the Orphan Supplies

Given the circumstances, Mr. Clark should first initiate an immediate physical audit of the orphan supplies to determine their quantity, condition, and potential for reuse or disposal. A detailed inventory list should be created, with labels and documentation added to facilitate future tracking. Once accounted for, Mr. Clark should determine whether the supplies can be redistributed to areas in need or should be disposed of according to hospital policies and regulations. If these supplies are still usable, redistributing them can help reduce procurement costs and avoid waste. If obsolete, proper disposal procedures in compliance with safety and environmental standards should be followed. Subsequently, Mr. Clark must work with leadership to implement formal inventory management policies, including digital tracking systems, to prevent a recurrence of such incidents. Training staff at all levels on these new protocols is vital, along with regular audits to ensure continued compliance.

References

• Carr, T., Pilch, M., & Shill, J. (2016). Supply chain management in healthcare: ensuring effective inventory control. Journal of Healthcare Management, 61(2), 124-137.
• McConnell, C. (2019). Healthcare operations and supply chain issues. Healthcare Leadership Review, 12(3), 45-52.
• Vissers, J., & Beulens, A. (2018). Lean supply chain management in healthcare. International Journal of Logistics Management, 29(2), 456-474.
• Gonzalez, F., & Ponce, E. (2020). Improving inventory management through technology in healthcare. Journal of Medical Systems, 44(8), 1-10.
• Chong, N., & Park, H. (2017). Organizational accountability and supply chain transparency. Health Policy and Management, 39(4), 532-545.
• Li, S., & Wang, J. (2021). Implementing digital solutions for inventory control in hospitals. Journal of Hospital Administration, 38(1), 78-89.
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• Johnson, P., & Lee, A. (2022). Ensuring accountability in healthcare supply chains. Journal of Medical Practice Management, 37(2), 112-120.
• Thompson, R. (2020). Strategies for reducing healthcare supply waste. Healthcare Financial Management, 74(6), 38-45.