This study consisted of a review and analysis of the supply purchasing procedures employed by the Presbyterian Medical Services of the Southwest (PMS) at Santa Fe, New Mexico. The purpose of the study was to determine the best purchasing system for that organization and to make recommendations for improvement where they were indicated. An in-depth review and analysis of the purchasing system at the Embudo Presbyterian Hospital was made with the intent of equating the findings to other hospitals and clinics of the PMS. Based upon this analysis and from supportive material obtained through a research of the literature, recommendations were made to establish a centralized purchasing system at the main office of the PMS. Also recommended was the employment of a purchasing agent to function as an assistant administrator in charge of materials management.