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Challenges in the decision-making process for Dutch healthcare organisations : The purchasers’ perspective

Salm, Luuk van der (2022) Challenges in the decision-making process for Dutch healthcare organisations : The purchasers’ perspective.

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Abstract:Due to rising purchasing costs in the last years in Dutch healthcare organisations it has become of greater importance to study the causes hereof. Known problems in literature are Physician Preference Items(PPI’s), those are products(or suppliers) that physicians have personal preference for based on habit or familiarity rather than lower cost. Together with the close relationship a physician can have with a supplier this complicates the decision making process for a purchasing manager. Due to this complexity many challenges may arise in the decision-making process. In order to investigate the main challenges the purchasing department faces, a case study of interviews with purchasing managers was done. By conducting these interviews it came to light that the PPI problem no longer exists in Dutch hospitals due to their organisational structures and drawn up rules and regulations to protect the purchasing process and restrict the power of the physician. The close physician/supplier relationship is still present but poses less of a threat and is more used by purchasers as an advantage in the negotiation or contracting. External factors like a scarcity of computer chips, raw materials, a global pandemic, stricter regulations in the medical supplies market and a war in Ukraine are the biggest challenges and main reasons of the costs increases nowadays. These cannot be solved directly by a purchasing department but have to dealt with in the most favourable way.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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