Assistance Publique - Hôpitaux de Paris 2015

Abstract

The Assistance Publique – Hôpitaux de Paris is the French public health establishment in charge of the healthcare services in the region around the area of Paris. It is composed of 39 hospitals organized in 12 hospitals groups and is ruled by the French law. The healthcare context in France is quite specific as public hospitals have to deal with two objectives embodied by two entities: the administrative management on one side, and the medical professionals. Those two objectives might appear contradictory but are the norm for most buying departments: reduce costs and maintain healthcare quality. The case takes place in 2015, the first year of the new strategic plan 2015-2019 with its set of objectives and processes to implement. It focuses on the logistic side of this strategic plan, and especially on the two purchasing departments, one which is in charge of direct procurement: AGEPS, and the other one in charge of indirect procurement:ACHAT. This case focus on the public institution, AP-HP, which is complex due to its size and its long history. A number of external factors impacting on its operations are discussed before dealing with the issues of the two buying departments. The key decision maker is Martin Hirsch, director general of the AP-HP since 2013. He was appointed by the French government, as stated in the law, and is in charge of supervising the strategy of the establishment. The business problem in this case focuses around the implementation of the new strategic plan 2015-2019 and its objectives. The main issue for the AP-HP is related to its size and a variety of internal and external constraints that Martin Hirsch has to take into account while managing the operations, as well as the buying departments to be able to meet their objectives in five years from that time.

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