Market analysis can be considered as the most critical section of a strategic plan or business plan. It seems to be determining the survival and success of virtually every organization since no business entity operates in isolation. This crucial role of market analysis does not exclude the health care organizations. In the health industry, the market analysis allows health care organizations to determine specific health care consumers and their needs and what the organizations ' marketing mix should consist of. If a market analysis is properly done, it would guide organizations in tailoring their services and products to consumers who are most likely to patronize them (Tuma, Decker, & Scholz, 2011). It seems technology, demography, regulations, consumer forces, and the caliber of health professionals are constantly shaping the rules of healthcare competition. Therefore, it is imperative to consider these factors when performing market analysis. Besides, if strategic leaders in the health industry are to be successful with market analysis and strategy implementation, then they would need to follow specific direction or map in their strategic management process (Ginter, Duncan, & Swayne 2013). Ginter et al (2013. p.12), stated further that ' 'without a map, managers run the risk of becoming totally …show more content…
This implies that the establishment of the satellite clinic will broaden its market base from counties surrounding Pocahontas County. However, PMH 's major competitor is Davis Memorial Hospital (DMH) with similar capabilities. Being a large hospital serving in Randolph County, DMH has the ability to enhance the quality of care and reduce cost. It may also have the resources to draw consumers from other areas. But PMH will secure its market base by establishing a comprehensive satellite
Determined healthcare systems routinely examine their environments internally and externally to locate significant trends and forces in the present and for the future which will have an effect on their performance goals and mission efforts. These healthcare systems understand who their stakeholders are, their needs and how best to meet those expectations and needs. These systems give attention to specific efforts on accomplishing goals that acquire opportunities in the whole environment while they continue to adjust their internal structures and functions. Precise aims are dealt with by uninterrupted sequences for performance improvements. Strategic directions for systems originate from the mission and directives. Strategic directions are identified by observing key stakeholders, addressing their interests and being proactive about responding to current, as well as, future shifts and trends in the systems’ entire environment (Skinner, 2001).
Healthcare industry of U.S. is a complex industry made up of a diverse workforce. Healthcare organizations are constantly in need of new strategies to survive in a competitive environment. For a successful organization, it is important that decisions are made in the best interest of all the stakeholders. According to Celluci & Wiggins (2010), a stakeholder is an individual, group, or entity that has an interest in organization’s success. Stakeholders include all employees, patients, community and healthcare providers.
Henry Ford Hospital segments the markets it serves by different population demographics, including gender, race, age, and location. According to the article, “Using Targeted Marketing Strategies to Optimize Health Care Plans”, employing marketing techniques that segment the member audience geographically, then determining their proximity to care and support services are important (Pitney, 2010). The article (2010) also states that demographic segmentation can uncover new approaches to reaching patients in traditional and nontraditional ways. Based on the organizations’ target demographics, organizations can uncover demographic insights to align communications with segment attributes and drive significant improvements (Pitney, 2010). Engaging the target demographics is important, and members who are more involved in their healthcare program tend to make better decisions about their consumption of benefits (Pitney, 2010). The article (2010) states that this in turn can help them become healthier and more productive. Henry Ford Hospital segments the market primarily by
Honor Health is a hospital and physician provider system located in phoenix Arizona. Honor health is relatively new hospital chain, more specifically it is the result of a merger of Scottsdale hospital and the John C. Lincoln Health Network (Alltucker, 2013). Honor Health’s mission statement is relatively short, comprising only a single sentence. Their mission and vision statements are, “To improve the health and well-being of those we serve” and, “To be the partner of choice as we transform healthcare for our communities” (Honor Health, 2015). While their vision and mission statements impart a direction and goal for their organization, the vagueness of both statements may cause problems in guiding targeted strategic initiatives. This essay
Health plans face a set of strategic choices in maximizing plan objectives. First, plans must decide whether to diversify product lines (e.g., HMO, PPO,etc.)(Anton, 1996). Medicinal services cost ascended at double the inflation rate from the mid 1980 's to mid-1990 's making a 1 trillion dollars’ industry that represented 14% of the US GDP (Gross Domestic Product). Before the end of century, the medicinal services industry had developed to more than 1.5 trillion dollar or 18% of GDP. In 1995 about 3 quarters of American specialists were guaranteed by HMO (Health Maintenance Organizations), PPO (Preferred Provider Organization) and POS (Point-of-Service) arranges up from just 27% in 1987.
Formed in 1998, the Managed Care Executive Group (MCEG) is a national organization of U.S. senior health executives who provide an open exchange of shared resources by discussing issues which are currently faced by health care organizations. In the fall of 2011, 61 organizations, which represented 90 responders, ranked the top ten strategic issues for 2012. Although the issues were ranked according to their priority, this report discusses the top three issues which I believe to be the most significant due to the need for competitive and inter-related products, quality care and cost containment.
Healthcare is one of the most dynamic industries in our great nation. To truly understand just how dynamic the industry is, one needs to understand that healthcare in and of itself is a living, breathing industry that is ever changing and conforming to meet the ideals set forth from a broad group of stakeholders. When one looks at the evolution that healthcare has undergone in the past 165 years, the picture of the true dynamics of this industry is painted. One must take this evolutional history into account when looking at the next ten years in our industry. When looking at these evolutional processes, one can see that the systems have changed as our country and its people have required it to (Williams & Torrens, 2008). When looking at how this industry will change or evolve over the next decade, one can ascertain that it will be by the demands of those involved that change will come.
Another reason strategic monitoring is important is because “there are more laws and regulations that apply to health care and biotechnology, with new ones being issued at an accelerating pace” (Moseley, 2009, p. 255). With the laws and regulations changing so often in health care it is important to monitor the changes so that organizations can implement them in their strategic plan as they occur. According to Al-Abri (2007), health care organizations can have a sustainable competitive advantage today if they maintain the ability to change, adapt, and evolve to the changes occurring in the health care industry. It is important for health care organizations to strategically monitor their strategic planning process because of the fast pace changes going on in the industry.
An organizational analysis is an important tool to become familiar with how medical businesses and organizations are able to meet standards of care, provide services for the community and provide employment to health care providers. There are many different aspects to evaluate in an organizational analysis. This paper will describe these many aspects and apply the categories to the University Medical Center (UMC) as the organization being analyzed.
With 17 existing hospitals and ____ physician practices, the Greater New Orleans Region of Louisiana is not a practical choice for Kaiser Permanente expansion. The four parishes: Plaquemines, Jefferson, St. Bernard, and Orleans would not make for a successful business venture. This report examines how the Kaiser Permanente Brand and Strategy Division assessed the region and determined the region could not realize and expand the mission and vision for Kaiser Permanente…..
Healthcare organizations are designed to meet the healthcare needs of individuals and promote a healthy community. The three healthcare organizations that interest me are: The Heart Hospital Baylor of Plano, Texas Health Center for Diagnostics & Surgery Plan, and Parkland Health and Hospital System. Due to evolving healthcare industry, focusing on just patients and physicians is no longer a marketing strategy. According to Mycek (2015), “Marketing teams need to expand their consideration set and focus on the new 5 P’s of Healthcare Marketing” (p. 1). The new 5 P’s of marketing now impact the marketing potential of healthcare organizations by offering changes in sales rep – physician access, purchasing, formulary decision making, and growing patient empowerment. The new 5 P’s of marketing are: Physicians, Patients, Payers, Public, and The Presence of Politics.
Today’s healthcare is very complex and complicated. Healthcare has many stakeholders including patients, medical providers, the government, healthcare facilities, payers, pharmaceutical companies, and insurance companies. Each stakeholder has their own vision of how the healthcare system should work. Each stakeholder is very important to the survival of continuation of healthcare services for millions of Americans. Every stakeholder has a different job but they all need to coordinate, work together, and combine their efforts to maintain the well fair of our healthcare system. This is easier said than done. Each stakeholder’s relationship with each other is complex and complicated. This author will compare and contrast different visons of healthcare among mentioned stakeholders and how these can be seen in our healthcare delivery system.
Due to the overhaul of the healthcare industry through the Affordable Care Act, branding is absolutely necessary for hospitals and healthcare organizations to participate in. Consumers are now more aware of products, services, and medicines that they may need. They are more informed in every level of healthcare including pricing, types of care, health research, and services available to them. No longer does every patient go to the local hospital for convenience, they travel for brand, for quality. In order for a healthcare organization to set them apart, they must develop a strong marketing strategy focused on patient need and satisfaction in order to build a solid
A marketer doesn’t just have a plan. Marketers now open up to a wider strategic plan and it’s based on steps that balance out what the market is offering consumers. These marketers must analyze their production with these steps, then make a portfolio of the growth and even their down falls therefore this keeps these marketers to continuously innovate and create even a greater amount of value for their customers. Marketing management functions are discussed along with the marketing mix and strategy.
The Keynesian concept of supply and demand clearly captures the population trends in health care and foreshadows the diminishing sustainability of the current financing structure. Substantial demand for health care services will not be waning anytime in the foreseeable future. The jump from 4.4 million Americans over the age of 85 in 2000 to 6.3 million predicted in 2025 comprises a significant increase in demand for health care (Williams & Torrens, 2008). Accordingly, total health care expenditures grew from 1.2 trillion dollars in 2000 to 2.7 trillion dollars in 2015 (National Center for Health Statistics, 2017).