Purchasing Department
The Purchasing Department at General Hospital controls almost sixty percent of the hospital’s costs as it is responsible for direct and indirect purchases of medical equipment, general use goods and materials. The philosophy of the department has been currently changed from old fashioned purchasing department, which maintained a mission of buying at the lowest cost to a procurement department with the refined mission of seeking the best value from fewer and most efficient, responsive, and reliable suppliers with whom the department maintains long-term, mutually beneficial business partnership. At General Hospital, the purchasing function is centralized. The division identifies the current needs of the various departments and purchases all of the equipment and materials centrally, thereby gaining more purchasing clout. Our mission is to carry on the business duties with fewer and higher-level buyers who can not only provide a superior quality product, but can also stand behind it.
Purchasing Standards Requirements
Our department observes Favored Nations Clause, also known as Most Favored Nation Clause, which assumes that an institution or organization will not have a preferential treatment in regards to another organization or institution, and will treat the other parties on equal basis.
Due date refers to an enforcement of a contract or a payment on a specified, predetermined, mutually agreed upon date and time.
The form and method of payment is a negotiable instrument between the institutional or corporate seller and the buyer; therefore, the Payment Terms are explicitly stated in the contract.
F.O.B. ('freight on board') contract terms have to be observed. Therefore, the goods provided to the purchaser have to be delivered on board by the seller, free of expense to the purchaser, and they are not at the letter's risk until actually delivered on board, when the property in them passes to him or her. The seller also has to give the buyer sufficient notice to enable him or her to insure against loss during the delivery and transit of the goods.
The goods provided are to be installed at the destination place free of charge. Therefore, it is the supplier responsibility not only to deliver the product, but also place it in a destination and ensure full operational capacity.
The supplier is to face a risk of insurance, which is a promise to bring the equipment and goods delivered to their full, uninterrupted functional capacity upon the destruction or mechanical failure due to unrestricted, reasonable usage of the equipment. The specific liabilities, the legal responsibility to the purchaser commanding an adequate performance according to the terms of the contract are to be carried out. The limits on the coverage, inclusions of a risk under the insurance policy, are to be mutually agreed upon.
The conditions of potential reimbursements for a loss experienced to the purchaser due to the supplier's negligence or not due care are to be contained in the Indemnification Clause.