Information Technology has transformed almost all aspects of modern healthcare and is playing a vital role in the administration of hospitals around the world. This case study examines one hospital's struggle to solve crucial operational problems related to the efficient management of medical equipment inventory. This case study is the result of studying the issues facing a regional medical center in the western United States and is based on an actual set of events. This case focuses on one hospital's decision between deploying a sophisticated information system in the form of a Real Time Location System, or outsourcing these activities to a specialist company. All identifying information has been changed to protect the privacy of all parties involved.