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Question 1: The Arnold Palmer Hospital was originally one of 900 members of a national purchasing group, which had served it well with respect to getting good prices for its supplies

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Question 1: The Arnold Palmer Hospital was originally one of 900 members of a national purchasing group, which had served it well with respect to getting good prices for its supplies. However, when the national purchasing group switched vendors for some products away from Arnold Palmer Hospital's preferred vendors, the hospital decided to form its own regional purchasing organization, along with seven partner hospitals in Florida. Surprisingly, even with far fewer members than the national organization, the regional group provided a 7% overall cost reduction for Arnold Palmer Hospital, in part due to savings in national membership fees. The regional group has been so effective because it has successfully relied upon trust among member hospitals, which must share patient and forecasting information with each other. Three other supply chain issues emerge from the video. First, the medical and nursing staff members at the hospital actively participate in supply chain management efficiency improvement efforts. Second, when possible, the hospital tries to focus on a few suppliers to form long-term relationships. Third, the regional purchasing group has successfully integrated three tiers of suppliers in some of its supply chain management initiatives. Why prices for certain supplies seemed to decrease when the hospital joined a much smaller purchasing group?