Bellwether League, Inc.William E. Pauley (1926-2011)

>William E. Pauley
Healthcare/Supply Chain Management Experience:

As I [nominator Patrick Carroll] began my career in supply chain in the late 1970s, I sought out excellent supply chain leaders to learn from. One of the individuals recommended to me was Bill Pauley. Bill was a career supply chain leader with documented published articles since 1966. He served as AHRMM (then ASHMM) president from 1980-1981. He was one of the pioneers in developing the Consolidated Service Center model in the late 1970s. He set up a central purchasing and distribution operation to support three hospitals and other sites at the Daniel Freeman Health System in Southern CA.

Bill was a prolific author publishing twenty (20) articles on the healthcare supply chain beginning in the mid-1960s. Some of his topics included “Quality Buying is Value Buying – Not Price Buying,” “Competitive Bidding – A Workshop Report” and “Value Analysis – The Action Approach to Purchasing,” published in journals such as Hospitals, Hospital Management Review, Hospital Progress and Purchasing Administration. His articles on Value Analysis were published in 1970, long before the Tax Equalization and Fiscal Responsibility Act of 1982 changed the economic landscape and created opportunities for supply chain leaders. Clearly, Bill Pauley demonstrated visionary leadership promoting the healthcare supply chain long before it became a fiscal mandate.  A complete list of his published articles is submitted under separate cover to this application.

Hall of Fame-worthy accomplishments:

I (nominator Patrick Carroll) met Bill early in my career (early 1980s) and was impressed. As I was starting my career in healthcare supply chain I was looking for individuals who could help me better understand the discipline I was beginning. Bill Pauley was one of those individuals and my recollections regarding Bill were very positive regarding his generosity of sharing his knowledge and his support. It was clear to me Bill Pauley was a man who knew healthcare supply chain.

I (co-nominator Jamie Kowalski) met Bill in the mid-1980s when engaged to work with Bill on a Plan for the future growth of Daniel Freeman Health System. Many of the concepts he executed were adopted by other Supply Chain leaders in future years.

Industry impact:

Unfortunately, Jamie and I are not aware of Bill’s activities prior to his presidency of AHRMM (then ASHMM) in 1980-1981.  His consolidated service center encompassing centralized purchasing and distribution at Daniel Freeman Health System was leading edge in that it was developed in the late 1970s and was, for that time, a unique approach.  However, testament to his leading edge concepts were the topics of his many articles generated in the 1960s, 1970s and 1980s.

The Medicare and Medicaid Acts were passed in 1965. Most hospitals did not even have budgets before the 1970s. As early as 1966, Bill Pauley was promoting and implementing supply chain concepts long before others were attempting to do the same. I believe Bill Pauley was a generation before his time in promoting excellence in supply chain management. Of the early pioneers of healthcare supply chain advocacy, only Dean Ammer was doing the same at the same time period.

While we have no evidence regarding his organization’s return-on-investment from Bill’s accomplishments, his Chief Financial Officer, Patricia Boucher, supported the Consolidated Delivery Center concept and operation.

Commitment to ethical standards, honesty and integrity:

Bill was regarded as a very straight shooter and a man of his word. Importantly, Bill let his accomplishments and deeds speak for themselves. He was not a man to “market” himself. However, he did have strong convictions on proper methodology in healthcare supply chain and would share those freely. I (Pat) believe Bill saw himself as a teacher and mentor on proper supply chain practices.

Bill did not telegraph what he was going to do; he just went out and did it. He was very transparent with what he did and willing to share his ideas and work. His election to AHRMM (ASHMM) demonstrates the confidence his peers had in his character. According to Susan Parham, his daughter, he had the confidence of the society directors at the time (Alan Aardsma, Deb Reinhold) as well as his fellow board members. His daughter was witness to those meetings.

Commitment to mentoring, education, and/or advocacy: 

Jack Anderson, a Supply Chain colleague who was in San Diego in the late 70s and early 80s with HCMMS, recalled he had a colleague in San Diego that was from the military. The fellow needed to learn about healthcare. Jack introduced his colleague to Bill, who also was a military veteran and served as a mentor to this fellow.

Bill also served as a mentor to Pat at the beginning of his career and provided advice and encouragement willingly.

Demonstrations of innovation and leadership:

While the consolidated service center at Daniel Freeman is demonstrable evidence of his innovation, the topics of his articles also demonstrate his innovation.  His publishing on Value Analysis predates the excellent later efforts of Don Siegle and Bill McFaul, both Bellwether honorees. While many of the doctrines Bill published would not be considered “innovative” in today’s era, they certainly were innovative in the cost based reimbursement environment at the time.  Clearly Bill Pauley was far ahead of his time.

His success with the consolidated service center at Daniel Freeman Health System would have required not only the vision to develop the concept but the leadership skills to translate his vision into reality.   He also served in a leadership role at Kaiser Sunnyside Hospital in Clackamas, Oregon later in his career and during his tenure at AHRMM president. His leadership was also demonstrated in his numerous articles and presentations.  Finally, even in his retirement Bill demonstrated his leadership with both the Elks Club and the 6th Marine Division Association serving as president of both organizations.

Degree of professional influence:

Bill wrote a column for HPN, called ‘Pauley on Purchasing’ for a number of years in the mid-1980s. The articles were very well received. As an officer of AHRMM, Bill likely presented at the Annual Conference. In the late 1970s and early 1980s the Board of Directors members were virtually always drafted to make presentations. This perception was confirmed by his daughter who accompanied him, with her mother, to many AHRMM meetings in the 1970s and 1980s and attended Bill’s presentations. Finally, as noted earlier, Bill published 20 articles on supply chain topics from 1966 to 1984 in various professional journals.
Bill advocated for Supply Chain management in his work with hospitals, as am AHRMM President, in his article writing and public speaking.  His advocacy began, as best we can determine, in the mid 1960s until his retirement in the late 1980s or early 1990s.

Application of Hall of Fame-level of knowledge and experience:

Based on his consolidated distribution model as well as his articles, Bill demonstrated Hall of Fame knowledge in virtually all aspects of the healthcare supply chain. Based on his impressive listing of presentation, Bill was well versed on all aspects of supply chain management as well as healthcare capital building projects.

Professional worthiness

Bill’s leadership did not end when he retired (likely from Kaiser Sunnyside Medical Center in the late 1980s or early 1990s). He was elected president of the reunion committee for the 6th Marine Division Association in 2001-2002 and was very active in the organization. As noted below in the comments of his son, Bill was a veteran of the Okinawa campaign in World War II and received the Purple Heart for his wounds in action. According the notice of his passing in the 6th Marine Division Association newsletter, he had been ill several years was in an extended care facility. His caregiver reported that at the time of his passing Bill straightened up, saluted, and then died.

Bill’s daughter indicated there was concern what Bill would do upon retirement. However, after an adjustment period, he became involved with the Elks (assuming a leadership position) and with the Shriners’ Hospital. Bill took it upon himself to drive the children, who were patients at the hospital, to their appointments. He also was extremely involved with the 6th Marine Division reunion for the remainder of his life.

Per Bill’s son: 

“Bill Pauley was very proud to have been a past president of the 6th Marine Division Association. Bill was a scout-sniper in F Company, 2nd Battalion, 29th Marines, 6th Marine Division. He fought in the Okinawa campaign until he was wounded in the battle for Sugar Loaf Hill. Like many combat veterans, he seldom spoke of his wartime experiences. But I know he still grieved over the death of his best friend, Pfc. Maynard Sheldon Bailey, who was killed in that battle and after whom I am named. I like to think that when my father awoke in the next world, he was 19 years old again and the first thing he saw was Maynard Bailey smiling down at him and giving him a hand up. Semper Fi.”

In His Own Words… As interpreted by daughter Susan Parham…

What would your father think about Bellwether League Inc.’s mission and philosophy and how would he feel about becoming an Honoree?

He would be honored and humbled for the acknowledgment by the organization.

What attracted and motivated him to join the healthcare supply chain management field when he did?

When he retired from the military where he was in procurement and the first job he was offered was in the health care field. He soon learned he enjoyed the field with all the challenges it brought.

For what one contribution would you like him to be most remembered?

He loved to write and was always submitting articles for publication in hope they would be helpful and beneficial to other professionals in the materials management field.

If he were to encourage people – either outside of healthcare or just out of school – to enter healthcare supply chain management and strive to be a future Bellwether League Inc. Honoree, what would he tell them?

He would tell them that the profession is what you make it. You can either have a “job” or you can make it a career. If you chose to make it a career you can have an influence on where the profession goes in the future and the impact it has on the healthcare industry and make wonderful friends and colleagues along the way.

What is the one industry challenge he would have liked to see solved during his lifetime?

Dad was a strong believer in making use of old materials that were being replaced by new. For example, hospital beds. He hated to see the beds just scrapped so he looked for ways they could be reused. He found there were organizations who were eager and willing to take the old/used equipment off his hands – sometimes for a small profit – and sent to other countries where they were used and appreciated.

How important is effective and innovative supply chain management during tough economic times?

Absolutely essential to the bottom line.

In two sentences or less, what defines healthcare supply chain leadership?

In any profession successful leadership is leading by example. If you aren’t practicing what you preach, those who are looking to you for guidance will fail and failure always affects the bottom line.

If you traveled back in time to when he just started in healthcare what would you tell him?

Hang in there, it gets better.

William E. Pauley Bibliography
  1. “How can I correct and control incorrect invoices received from vendors?”  Pauley WE, Hospital Purchasing News, 1984 Mar; 8(3):62-3, 76. .
  2.  “Adequate staffing.” Pauley WE Purchasing Administration 1981 Jul, 5(7):12-3, 16-7.
  3.  “Product evaluation – standardization – value analysis.”  Pauley WE. Purchasing Administration 1980 Sep; 4(8):5-7
  4. “Product evaluation-standardization-value analysis, Part II.” Pauley WE. Purchasing Administration 1980 Aug; 4(7):22, 24-5.
  5. “Product evaluation – standardization – value analysis.” Pauley WE. Purchasing Administration 1980 Jul; 4(6):2, 19.
  6.  “Purchasing the right quality is value buying.” Pauley WE. Purchasing Administration 1980 May; 4 (4):4, 40, 42-3.
  7. “Centralized vs. decentralized purchasing.” Pauley WE. Purchasing Administration 1980 Apr; 4(3):4, 18.
  8.  “Equipment acquisition.” Pauley WE. Purchasing Administration. 1980 Mar; 4(2):4, 44-6.
  9.  “Pauley on purchasing: policies and procedures.” Pauley WE. Purchasing Administration 1980 Jan-Feb, 4(1):4, 49-50.
  10.  “'Get it together,' or face greater controls.” Pauley WE. Purchasing Administration 1979 Nov-Dec; 3(10):10.
  11.  “Attacking your purchasing problems with positive purchase control.” Pauley WE. Purchasing Administration 1978 Mar; 2(2):22-5. No abstract available.
  12.  “Should purchasing approve invoices?” Pauley WE. Hospital Progress 1970 Nov; 51(11):52-3
  13.  “Value analysis – the action approach to purchasing.” Pauley WE. Hospital Management 1970 Aug; 110(2):65-8.
  14.  “Value analysis – the action approach to cost reduction.” Pauley WE. Hospital Management1970 Jun; 109(6):54-5.
  15. “Purchasing research I: Academic definition.” Pauley WE. Hospital Management 1968 Sep; 106(3):75-6.
  16.  “Competitive bidding – A workshop report.”  Pauley WE. Hospital Management 1968 Aug; 106(2):83-4.
  17.  “The case for centralized materials management.” Pauley WE. Hospitals. 1967 Aug 16; 41(16):76-83. No abstract available. 
  18.   “Quality buying is value buying – not price buying.” Pauley WE. Hospital Management 1967 Jul; 104(1):105-6.
  19.  “12 purchasing tools.” Pauley WE. Hospital Progress. 1967 Feb; 48(2):97-108.
  20. “Cash purchasing.” Pauley WE. Hospital Progress 1966 Mar; 47(3):83-6.