Final Exam Case W20.pdf - S w HILLVIEW HOSPITAL THE...

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S w 9A97J006 HILLVIEW HOSPITAL: THE HANDSOAP DECISION Cara Maurer prepared this case during the 1997 Case Writing Workshop solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail [email protected] Copyright © 1997, Ivey Management Services Version: (A) 2010-02-04 In early January 1997, Joe Matus, purchasing officer at the Hillview Hospital in London, Ontario, was reviewing four suppliers’ quotes for antiseptic handsoap. Joe had asked for new quotes after receiving a large number of complaints from hospital staff about sudden problems with the current handsoap. Testing revealed that the current supplier had changed the soap’s formulation without informing the hospital. HILLVIEW HOSPITAL London, a city of 350,000 in Southwestern Ontario, was renowned for the quality of its main hospitals: Hillview Hospital, Victoria Hospital, University Hospital, Parkwood Hospital, St. Joseph’s Health Care Center, Childrens’ Hospital of Western Ontario and the London Psychiatric Hospital. Founded in 1894, Hillview Hospital was a chronic care hospital, specializing in the areas of complex care, rehabilitation and geriatrics. Hillview was one of London’s large employers with 658 full-time and 543 part-time employees. INDUSTRY Times were turbulent for the entire health care industry in Ontario. Many hospitals were faced with budget cuts, downsizing and even closure. Hillview had been able to withstand these pressures in large part

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