Gunerson then drafted the following memo to the local Purchasing Departments:
Dear Purchasing Department lead,
The Board of Directors has approved a new procurement process.
Henceforth, all heads of Purchasing at local sites of care will alert the Vice
President of General Services/Supply Chain Management about contracts above
$100,000, which they plan to negotiate with suppliers at least a week before the
day they will be signed.
I know you must understand that this change is critical to coordinate
procurement requirements and to eliminate inefficiencies within the system.
Today, our member organizations’ purchasing habits result in unnecessary
redundancies and high prices. This step will provide the head office with the
information it needs to ensure that each site of care procures the optimal volume
of supplies at the best prices. As a result, the goals for each site of care and for
Galen as a whole will more likely be achieved.
Sincerely,
Richard Unger Gunerson II, FACHE
Vice President of General Services/Supply Chain Management
Gunerson gave Stacie Friberg the memo and asked for her input. She told him she thought the
memo was great. She also suggested, however, since he had met only two of the local Purchasing
Department managers that he might like to meet all of them and discuss this major change in
procurement with each individually. Gunerson declined, stating that he was unable to travel to each
local site because he had so many things to do at home and at the office and it would be too
expensive.
Over the next few days, responses came in from all but a few local Purchasing Departments.
Some managers wrote longer responses, but the following e-mail message was typical:
Dear Dick,
Welcome to Galen! We are pleased to hear that you are settling into your position
as the new procurement coordinator. We received your recent communication
about notifying headquarters a week in advance of our intention to sign contracts
with suppliers. This suggestion seems very practical. We would like to let you
know that you can be sure of this hospital’s cooperation in your new job.
Best regards,
Over the next several weeks, Gunerson heard nothing from the local Purchasing Departments
about contracts being negotiated with suppliers. When he asked Friberg to follow up with several of
the local managers, they frequently reported that they were quite busy. As a result, the usual
purchasing procedures continued and Gunerson struggled to build momentum towards GPO
membership.