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Marketing the Health Care Organization Marketing the Health Care Organization References: Marketing for Health Care Organizations Philip Kotler Roberta N. Clarke Prentice Hall, Englewood...

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Marketing the Health Care Organization
Marketing the Health Care Organization
References:
Marketing for Health Care Organizations
Philip Kotle
Roberta N. Clarke
Prentice Hall, Englewood Cliffs, New Jersey
1987
The Role of Marketing in the
Health Care Organization
    What is marketing?
    Not just public relations
    Not just fundraising
    Not just selling, advertising or
anding
    Not just planning
    Kotler ‘s definition
    The analysis, planning and implementation and control of carefully formulated programs designed to
ing about voluntary exchanges of values with target markets for the purpose of achieving desired organizational objectives
    This makes marketing a managerial process
    Note that marketing is designed to align the services delivered by an organization with desires, wants or needs of customers
    Forcing a product on a target market will most likely end in failure
Distinctive Characteristics of Health Care Organizations
    It is becoming increasingly difficult to distinguish between for-profit and not-for-profit healthcare organizations
    Revenue and expense pressures have caused this blending of characteristics
    For profit oriented healthcare organizations the need for marketing was historically less complex
    Determining cu
ent customer needs and implementing mechanisms to meet those needs
    Anticipating needs or new markets and designing services around those needs
    Not-for-profit healthcare organizations have historically had two major markets
    Patients or clients
    Donors or sources of funds
    Given that not-for-profit organizations will often pursue many objectives simultaneously they will often end up with complicated mission statements and marketing plans
States of Demand
States of Demand
    Negative Demand – customer avoidance
    No demand
    Latent demand – need without a developed service line
    Falling demand
    I
egular demand – varying need
    Full demand – service needs perfectly matched with providers of service
Criticisms of Marketing
    Marketing wastes money
    Marketing is manipulative
    Marketing will lower the quality of care
    Marketing is intrusive
    Marketing will cause healthcare institutions to compete
    Marketing will create unnecessary demand for healthcare
Organizations Types and Marketing
    Responsive Organization – meeting customer needs
    Determining the business we are really in
    Exchange systems – how do we receive revenue and expend resources
    Determining publics
    Who are we marketing to and for what desired result
    Determining customer satisfaction and measurement
    Adaptive Organization – changing organization
    Monitor environmental changes
    Rapid or gradual
    Readiness to alter mission and objectives to evolving opportunities
    Entrepreneurial Organization – focus on identifying and exploit new opportunties
    Idea generation
    Idea screening
    Concept development and testing
    Marketing
    Commercialization
Marketing Infrastructure
    Marketing assigned to no one
    Appointing a marketing executive to the Board
    Invite help from marketing faculty and students
    Hiring outside expertise – consultants
    Sending an internal staff member to marketing seminars
    Appoint a marketing committee
    Hiring a professional marketer to run an internal marketing operation
    Determine level of position within the organization and reporting line
    Organizational structure sends a signal about how important the function is
Marketing Information and Research
    Marketing information system
    System for gathering, analyzing and disseminating relevant marketing information for decision making
    Marketing intelligence system
    Monitoring changes in the external environment
    Market research
    Systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation
    Types of marketing research
    Advertising research
    Product research
    Sales and market research
Marketing Research Process
    Research problem identification
    Exploratory research
    Observational research
    Qualitative interviewing
    Questionnaire design and sampling
    Fieldwork for collection
    Data analysis and report presentation
Market Measurement & Forecasting
    Defining the market
    Who is the market? (market definition)
    How large is the market? (cu
ent market measurement)
    What is the future size of the market? (market forecasting
    Market segmentation
    Geographic
    Demographic
    Multivariable
    Psychographic
Four P’s of Marketing
    Product
    What services are we delivering?
    Place
    Where are we delivering those services?
    Price
    How much are we charging for the services?
    Promotion
    How are we telling our potential customers about the services?
Case One for Discussion
You have been hired to assist an existing ten physician practice in expanding their practice in the metropolitan area. You have been asked to develop a plan for marketing the practice in the hopes of attracting new patients.
What are the key information points you need to begin work?
What mechanisms should you recommend to the physicians?
How would you structure your initial report?
Case Two for Discussion
You have been hired by a non-profit hospital to market the hospital and its service lines to both physicians and patients in the hospital service area in hopes of increasing the shrinking daily census of the hospitals. You have been asked to present a report to hospital management for the development of a marketing plan.
What are the key information points you need to begin work?
What mechanisms should you recommend to the hospital management?
How would you structure your initial report?
Defense
    Self-Reporting
Honest and cooperative with the OIG
Willingness to engage in self-critical analysis
    Corporate compliance
    Community Need
    Financial Hardship

HCAHPS & Loyalty_8.5x11.indd
The HCAHPS Survey is a valuable tool for
hospitals seeking to promote service consistency
and ensure that basic elements of the service
experience are being performed throughout
the hospital. However, patients’ perceptions
of “how consistently” a service was provided
are not the same as understanding their
perceptions of “how well” that service was
provided. HCAHPS focuses on behaviors that
are expected of every hospital during every
inpatient stay. If your hospital does well on
HCAHPS, you demonstrate that, like most
other hospitals in the country, you are a capable
provider of care.
Focusing on consistent behaviors
is only one piece of a successful strategy to
differentiate your hospital and win the
loyalty of your patients. As the industry
leader in loyalty research, PRC has developed
highly regarded toolsets and analytical
approaches that have helped many hospitals and
health systems achieve distinction for service
excellence in their markets. Our PRC Patient
Loyalty Surveys are purposefully designed to
provide hospitals with actionable information on
their patients’ perspectives of how well care was
In order to optimally position your hospital,
PRC recommends a two-pronged strategy that
centers on the PRC Loyalty Survey augmented
with either a separate HCAHPS survey or in
combination with HCAHPS survey questions.
H C A H P S & P R C L o y a l t y Su r v e y s
Why Measure Both?
July 2009
provided, and they highlight those specifi c areas
that are key to building loyalty.
CMS Has Changed
the Landscape
Hospitals and health systems today are being
called to accountability for the quality of patient
care from an increasing number of directions.
As healthcare becomes a more dominant topic
in the public forum, a greater number of external
forces begin to cast a critical eye toward hospital
practices. The largest, and most obvious, of these
forces is the Centers for Medicare and Medicaid
Services (CMS), with their Reporting Hospital
Quality Initiative.
The measures, both clinical and perceptual,
that the CMS is asking hospitals to record and
eport represent a demand for proven methods of
treatment and consistent methods of patient care:
• Did someone give every heart attack patient an
aspirin upon a
ival?
• Did someone give every pneumonia patient
advice about smoking cessation before
discharge?
• Did someone give every surgery patient a
preventive antibiotic one hour before incision?
• Did the nurses always listen carefully to patients?
• Did the hospital staff always tell patients what a
new medicine was for?
• Did the hospital staff always do everything they
could to help patients with their pain?
It is safe to assume that where the CMS
leads, private payers will follow, and most
industry leaders assume that the era of pay-for-
performance is in the very near future if not
already here. Adherence to these methods will be
tied to a very specifi c dollar amount (and in most
estimations, a very large dollar amount). For the
clinical measures, hospitals have already invested
countless hours and dedicated staff members
to make sure that treatment methods are being
followed, patient records are being documented
thoroughly, and data collection for the CMS is
eing handled accurately and timely.
It can be tempting to play it safe at this
point and assume the extreme: that the dollars
attached to HCAHPS reporting (and ultimately
performance) will be substantial, and that
providing consistent patient care will be enough
to ca
y your organization fi nancially.
We strongly encourage hospitals to take a
longer view, to translate those dollars back to
what they represent about the care you provide
to patients. The CMS’s goal is for every hospital
to perform all of the behaviors addressed in
the HCAHPS survey always, and this is what
hospitals will be paid to accomplish. When
you are doing all of these things always and
focusing your staff’s efforts on these behaviors,
will your patients:
• Receive care that is more consistent? Yes.
• Realize better outcomes? Presumably.
• Evaluate their care as the best it could be?
Not necessarily.
• Feel loyal to your hospital? Not necessarily.
The CMS’s goal is
for every hospital
to perform all of
the behaviors
addressed in the
HCAHPS survey
always, and this
is what hospitals
will be paid to
accomplish.
Operational
HCAHPS Survey
Identifi es areas for increasing
consistency of behaviors
Service
PRC Loyalty Survey
Identifi es areas for increasing
patient loyalty
Excellence in Data
2
common source cited for information on local
doctors, hospitals and healthcare providers was
family and friends. This reliance upon personal
ecommendations has grown by 25% over the
past 25 years. Additionally, consumers have
decreased reliance on their family doctor as their
primary source for local healthcare information.
In 2009, 33.6% of consumers relied on family
and friends, 21.1% relied on their family doctor,
8.6% relied on the internet, 6.7% relied on the
insurance, 6.4% relied on experience, and the
emaining 23.6% relied on various other sources.
Once you determine that patient loyalty is
your objective, you must understand what makes
patients loyal. You give patients an experience,
not just a service encounter. You give them a
story to tell based on memorable events during
their stay. You exceed their expectations and
strive to make them feel that they received
EXCELLENT care. You WOW them. PRC
esearch conducted with over 200,000 inpatients
discharged during 2008 shows that patients who
ated their overall quality of care as “Excellent”
were nearly four times more likely to recommend
the hospital than patients who felt the overall
quality of care was “Very Good.”
The aspects of care addressed in the survey
are those that we have identifi ed over the past
30 years as exhibiting the most infl uence toward
patients’ perceptions of Overall Quality of Care.
Although the ultimate fi nancial impact
of HCAHPS is still unknown, everyone seems to
acknowledge that we will be able to put a dollar
amount on it soon. The fi nancial value of patient
loyalty is more diffi cult to identify precisely, but
the intangible benefi ts are clear. Loyal patients
will return to your organization if they need
further treatment or care for another condition.
Loyal patients will be advocates for you in the
community and will be more likely to respond to
your requests for resources (including time spent
volunteering and donations). Most importantly,
loyal patients will talk; they will recommend
your hospital to friends and relatives who may
need healthcare services.
Of the 1,000 consumers surveyed in the
2009 PRC National Consumer Study, the most
Patient Loyalty
Vital to a
Hospital’s
Success
3
Loyal patients are the key to increasing
market share and earning your hospital
the opportunity to continue providing
excellent patient care.
Different Surveys Fullfill
Different Objectives
4
Many of the aspects of care included in
the PRC Patient Loyalty Survey are also
addressed in the HCAHPS survey, but the
perceptions being measured by the two
different scales are separate and distinct. In
eliability testing conducted by PRC, the PRC
instrument is shown to have a Cronbach’s alpha
value of XXXXXXXXXXon a scale from 0 to 1, where
0.700 is considered a valid threshold for
eliable), and the
HCAHPS instrument has
a Cronbach’s alpha value
of 0.865, indicating that
oth tools are reliable
for what they measure.
When combined together
and examined as one
instrument, however, the
Cronbach’s alpha value
drops to 0.684, indicating
that the two sets of
questions are measuring
different facets of the
hospital experience and
cannot be exchanged, one for the other, with an
expectation of using the results to achieve the
same goals.
Certainly, maintaining two separate and
distinct measurement systems can be challenging
for administrators and staff, as they try to decide
where to focus their attention. When making
a decision about what to measure and how to
measure, you must account for the end-users
you seek to serve, keeping in mind that different
end-users may have different objectives, and one
instrument may not fi t all.
According to the CAHPS Hospital Survey
Fact Sheet (CMS, updated 10/2007), the
HCAHPS survey “was designed to produce
data on patients’ perspectives of care that allow
objective and meaningful comparison of hospitals
on topics that are important to consumers.” When
consumers are reviewing HCAHPS data to make
comparisons between hospitals, we assume that
their intention is to
Answered Same Day Feb 06, 2023

Solution

Ayan answered on Feb 06 2023
33 Votes
WRITTEN ASSIGNMENT        2
WRITTEN ASSIGNMENT
Table of contents
Discussion    3
References    5
Discussion
    It is complicated and relies on many different circumstances whether it is ethical for doctors to publicize their quality performance criteria in comparison to other doctors based on publicly available data (Khazzaka, 2019). On the one hand, making this information public can improve healthcare accountability and openness while empowering individuals to make knowledgeable decisions about their care. Additionally, it can promote competition among healthcare providers and lead to advancements in the standard of treatment.
    But there are also a number of ethical issues to take into account. First, there is a chance that the publicly accessible data may not be accurate or genuine. The data could not fully reflect a doctor's performance, which could result in inaccurate inferences or unfavorable outcomes for the doctor (Kaplan, 2020). Second, prejudice and discrimination may be present in the comparison of quality performance criteria based on publicly available data. For instance, even if a doctor is delivering high-quality treatment, their performance criteria may be lower if they treat populations with more complicated health needs.
    Third, the disclosure of performance data may have a...
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