Comparative Analysis of Supplier Risk Management in Public vs. Private Hospitals

Thesis Abstract

This study investigates how supplier risk management (SRM) differs between public and private hospitals, addressing persistent concerns about supply disruptions, cost overruns, and quality variance that threaten patient care and organizational resilience. The research problem centers on whether structural, regulatory, and market-driven differences between public and private healthcare systems produce distinct SRM practices, risk exposure profiles, and performance outcomes. The aim is to compare SRM maturity, supplier relationship practices, and risk mitigation effectiveness across the two sectors, with the objective of identifying best practices and contextual constraints that influence SRM performance. Specific objectives include (1) assessing SRM maturity levels using a validated 5-dimension scale (supplier selection, contract management, performance monitoring, risk assessment, and supplier collaboration); (2) examining the association between SRM practices and procurement performance metrics (cost, quality, lead times, and resilience during supply shocks); (3) evaluating the influence of governance, regulatory compliance, and market concentration on SRM in each sector; (4) identifying sector-specific drivers and barriers to effective SRM; and (5) proposing a sector-tailored SRM framework to enhance resilience. A mixed-methods design is employed, combining a cross-sectional survey with qualitative interviews. The population comprises procurement and supply chain professionals in public and private acute-care hospitals within a defined national healthcare system. A stratified random sample of 60 public and 60 private hospitals will be drawn, with 360 procurement professionals targeted for survey administration (approximately 6 respondents per hospital). Semi-structured interviews will be conducted with 12 senior procurement managers (6 per sector) to enrich quantitative findings with in-depth insights into contextual constraints and decision-making processes. Data collection instruments include a structured questionnaire derived from a previously validated SRM scale, complemented by interview guides aligned to the theoretical constructs. Survey items will employ Likert-type scales to measure maturity, risk exposure, and performance outcomes. The study will also collect objective procurement data from hospital procurement records for a 24-month period, including total cost of ownership, supplier performance scores, stockout frequency, and lead times. Validity and reliability will be established through content validity with expert panels, pilot testing in two hospitals, and confirmatory factor analysis to verify the SRM construct structure. Reliability will be assessed using Cronbach’s alpha and composite reliability. Data analysis will integrate quantitative and qualitative methods descriptive statistics and multivariate analyses (MANOVA to compare SRM dimensions across sectors, multiple regression to test the relationship between SRM maturity and procurement performance, and hierarchical linear modeling to account for hospital-level clustering). The study will also apply ANOVA to test sectoral differences in risk exposure and resilience indicators. Qualitative data will undergo thematic analysis guided by Braun and Clarke, with results triangulated against quantitative findings to develop a nuanced interpretation. The theoretical framework combines the Resource-Based View and Transaction Cost Economics to explain how organizational capabilities and governance structures shape SRM approaches in different hospital sectors, complemented by the Risk Society theory to interpret external risk drivers. Expected findings anticipate higher SRM maturity in private hospitals due to market-driven competition and greater flexibility in contract management, with stronger links between SRM practices and performance outcomes in the private sector. Public hospitals are expected to exhibit more formalized governance and compliance-oriented SRM, potentially leading to slower responsiveness but greater standardization and risk controls. Variations in supplier bases, bargaining power, and regulatory pressures are likely to influence observed differences in risk exposure, contract agility, and supplier collaboration. The study’s contribution to knowledge lies in delivering an empirically grounded, sector-specific SRM framework that integrates governance, market conditions, and organizational capabilities to enhance resilience in hospital supply chains. The main conclusion will emphasize the critical need for harmonized SRM practices that balance risk mitigation with agility, recommending policy reforms to streamline supplier qualification, contract flexibility, and information sharing, along with sector-tailored training programs to build SRM capability across public and private hospital procurement teams.