Business Case Studies & Business Publications

Uncertainty in Hospital Supplies—A Cardi...

Matherne, G. Paul

Case

Uncertainty in Hospital Supplies—A Cardinal Error (A): Decision-Making as a Crisis Unfolds

Matherne, G. Paul

OM-1764 | Published February 18, 2022 | 4 pages Case

Collection: Darden School of Business

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This case set is about the unfolding uncertainty associated with a supply chain issue involving Cardinal Health (Cardinal), the primary supplier of surgical packs to Garfield Health System (GHS). John Jenkins, MD, the newly appointed chief medical officer (CMO) at a medium-size university hospital at GHS, must assess the issue and respond as Cardinal notifies GHS of potential contamination in the manufacture of surgical gowns. Cardinal initially notifies customers of a potential problem, and then over the next several days, releases more information, culminating in the recall of virtually all of its surgical supply packs. Many institutions, including GHS, are thus forced into a dire situation, resulting in some cases in cancelation of surgical procedures. In this A case, Cardinal issues its first warning of a potential contamination problem. In the B and C cases, the crisis unfolds, and in the D case, a new crisis appears. This case set could be utilized in health care courses or courses in business decision-making.