MHD 1553 Marketing Management Group Assignment

Perpetual Mercy Hospital

Prepared by: Sahimeh Hosseini Tounsi Marwa Zohreh Bang Tavakoli Lee Han Siang MH101108 MH101062 MH112033 MH111036

Prepared for Prof. Dr. Abu Bakar Abdul Hamid

Perpetual Mercy Hospital Nature of the industry, market, and buyer behavior:
1. What is the nature of industry structure, conduct, and performance?
Combining medical technology and the human touch, the healthcare industry diagnoses, treats, and administers care around the clock, responding to the needs of thousands(11,663 total office population in five block radius) of peoplefrom newborns to the terminally ill. The natures of the services are Ambulatory, health services, Preventive health care, minor emergency care. Referral acute and chronic health care problem, specialized employer services, primary health care services and basic X-ray and laboratory test. Industry Structure. Industry; they vary greatly in terms of size, staffing patterns, and organizational structures. The location for DHC Greater West Office and Shopping Complex Hospitals provide complete medical care, ranging from diagnostic services, to surgery, to continuous nursing care; specialize in treatment of the mentally ill, cancer patients, or children. Hospital-based care may be on an inpatient (overnight) or outpatient basis. The mix of workers needed varies, depending on the size, geographic location, goals, philosophy, funding, organization, and management style of the institution. As hospitals work to improve efficiency, care continues to shift from an inpatient to outpatient basis whenever possible. Hospital provide 24hours service. Ambulatory healthcare services. This segment includes outpatient care center and medical and diagnostic laboratories. These establishments are diverse including kidney dialysis centers, outpatient mental health and substance abuse centers, blood and organ banks, and medical labs that analyze blood, do diagnostic imaging, and perform other clinical tests. There are some percentages employment distributions, industry segment y Ambulatory healthcare service

y y y

Offices of physicians Home healthcare service Medical and diagnostic laboratory

Hospital: y y y y Increase the value of performance in term of core services to their communities. PMH Performance AS a leader pays close attention to their competition. PMH as better demonstration their value to consumers and payers. Another performance credited to PMH is that they understand areas still need improvement and find ways to keep improving.

2.

Who are the competitors, and what are their strengths and

weakness?
y y 6 competitors main competitor , Med center is the major competitor mention in this case, is a privately owned and located at suburban Strength of the Competitor Med center: (a) Geographical coverage: the competitor is well and strategically located in the suburban (b) Market oriented: understand its market share (c) Reputable company Weakness of the competitor (Med center) (a) Med center did not provide employee services at its suburban area (b) Cost and Availability, med center financially not strong compared to the Perpetual mercy Hospital.

3. How do buyers buy in this industry or market?

(a) Buyers in this industry or this market buys through person visit; Personal illness (b) Buyers in this industry or market could also buy through Workers Compensation (d)Employment / insurance scheme is another way that buyer buys in this industry. 4. Can the market be segmented? How? Can the segments be

quantified?
CAN THE MARKET BE SEGMENTED? (a) The market can be segmented due to the unfavorable demographic shift (b)The services of PMH can be segmented based on patient care services (employer service) CAN THE SEGMENTS BE QUANTIFIED? (a) The market can segments and be quantified by considering the Revenue made $378,000 plus (b) Maintain status quo (c) Downtown Health Care made 105 referrals PMH (d) Estimated $30,000 as net profit on investment (e) Decrease bad debt form 4% to 2%. Quantification can be through population of almost 12,000, personal illness exams 53%, workers compensation exam/ treat=25% Employment /insurance physical exams 19% Emergency 97%

5. what are the requirements for success in this industry?

PMH: provide compete medical care such as diagnostic services, surgery, continuous nursing cares, specialize in treatments of patients (a) The industry must be able provide full service (24 hours service).

(b) Another requirement for success in this industry is providing Ambulatory Health care Services, facilities, treatments and practices that consumers use on am episodic or emergency basis (minor emergency center and medical emergency clinic) (c) In this industry there must be a recommended expansion such as preferred provider organizations (PPOs), (d) Advance in medical technology, miniaturization and medical equipment (e) Customer must proactive stance on where they will receive their treatment. (f) The professional and standardized treatment practice

The Organization:
1. What are the organization mission, objectives and distinctive competency? The objectives:
records kept by PMH revealed that the PHC was realizing its objectives for example: the referral objectives was being met since the PHC had made105 referrals to PMH and procedure slightly over 3758000 in revenue and an estimated 30000 in net profit. Almost all off tis patient were privately insured the service mix though dominated by treatment of common illnesses and examination did indicated that the DHC was being used for a variety of purposes. A breakdown of the reasons for patient visits for the first 11 months of operating is as below: Personal illness exam: 53% Workers compensation exam/treatment: 25% Employment/insurance physical exam: 19% Emergency: 3% Total: 100% i. ii. iii. iv. To expand the hospitals referral base to increase referrals of privately insured patients to establish a liaison with the business community by addressing employers specific health needs to become self-supporting three years after opening

The mission: i.
ii. they had study to open an ambulatory facility in the downtown area about ten blocks north of the hospital attracted thousands of families from other states-families drawn to the areas dynamic robust business climate

Distinctive competency:
Specialized employer service for example pre-employment examination and treatment of workers compensation injuries

2. What is its offering to market? How can its past and present performance be characterized? What is its potential?
The specific service to be offered by the DHC would include: i. ii. iii. iv. v. vi. preventive health care as an instance: physical examination and immunization minor-emergency care referral for acute and chronic health care problems specialized employer services for example: pre-employment examination and treatment of workers compensation injuries primary health care services for example: treatment of common illnesses basic X-ray and laboratory tests: the DHC would be open 260 days a year (Monday and Friday) from 8 am to 5 pm

Characterize past and present performance:

i. ii. iii. iv. v. vi. Maintain status quo (reputation image) DHC made (105) referral to PMH 378000+in revenue Decrease in debt ratio (bad debt was costing 4% of gross revenue improved credit and collection procedure created figure decreased by 2%) 5% boost in personal and professional service expenses 8% across the board in charge may 1st

Potentials:
i. ii. iii. iv. Financially strong effective staff management specialized in employer service had a member of the board of trustees owned the greater west complex that wants to share constriction design and equipment with the hospital

3.
i. ii. iii.

What is the situation in which the organization or manger find itself?

Management problem and also market competitive issues find themselves in situation of how to improve its relation with the business communities (how to rebuts business climate) Time management situation (service hours, service offered, and waiting time) thirty percent of patient suggested expanded service hours with on opening at 7 am and closed in 7 pm needing to add some kinds of services such as gynecological services (one half of the females patient requested that gynecological service is needed)

iv.

4.
i. ii. iii. iv.

What factors have contributed to present situation?

competitors (med center) the fear of competitors and overtaking the market demographical shifts (the people moving to downtown from another area) The hospital administration and board of trustees have serious concerns about mix which reflects unfavorable demographic shifts population (most of the population growth in recent years occurred in the suburban area to the north east west)

A plan of action:
1. What actions are available to the organization?

In order to improve its image and make DHC highlights the necessary actions that has to be made in order to achieve its objectives first it expand by DHC at downtown area, also expand services hours and trying to reduce waiting time, also trying to Improve the financial standing, furthermore they decide increase number of doctor shifts in genecology department and then running an informational advertisement in the downtown weekly newspaper.

2. What are the costs and benefits of action in both quantitative and qualitative terms?

Benefit of action:
Reduction of costs related to bad debt from 4 to 2 percent Estimates of 30.000 dollars in net profits Additional 2000 visits to genecology department

y y y

Costs of actions:
y 10.400 dollars costs per year for the weekly advertisement

3. Is there a disparity between what the organization wants to do, should do, can do and must do?
No there is so disparity between what the organization want to do, should do can do and must do since it starts to realize its objective by enlarging its referrals and increase its revenue by 378.000.the organization I mean DHC is trying to improve and embellish its image by responding to the customer needs and trying to satisfy them and it faces a success in that since 5% of the visit are repeated visits other than that the number of visits is increasing.

Potential Outcomes:
1. What will be the buyer, trade, and competitive response to each course of action?
Plan of action: y Expand DHC at downtown area, expand services hours, new service added and reduce waiting time. y Improve financial standing y Running advertisement Buyer will acknowledge/recognition the action taken and taking consideration for the visit/shop. By the way, the new actions will also adding more choices and services to the potential customer. The actions will also help the trader involve increase the frequent of trade and price maybe reduce also. Besides, the actions increase competitiveness and popularity of the organization. Competitors will be taking other action to counter back from the impact.

2. How will each course of action satisfy buyer, trade, and organization requirements?
The actions plan to be taken provide more services than before, this can fulfil/satisfied the needs and wants for the request from female customer. Reduce waiting time increase the reputation of the hospital because the action also means efficiency. Improve financial standing reduce the bad debts of the organization and so that their pharmaceutical product supplier will increase the confident to trading. In long term, the organization can make net income/gain/profit. Running advertisement can help increase the organization recognition and awareness of existence. Besides, the potential customer around the DHC will realize the existence of the clinic. At the same time, attract more customers within the downtown area.

3.

What is the potential profitability of each course of action?

The potential profitability is they can become financial free, self-supporting although they are not-for-profit hospital. When profit is made, this means they are able to survive in the business. Furthermore, it can increase number of female patients since added the new gynecological services. In addition, it helps the hospital getting more new customer and referrals from old customer, directly will increase the revenue of organization. Thats means; it will increase the market segment and competitiveness of the hospital.

4. Will the action enhance or reduce the organizations ability to compete in the future?
After expansion and well management, the action will increase market share and competiveness from the view of service quality, for sure it will enhance the ability to compete in future, because it helps to broaden the market of the hospital and directly increase the number of customer. But, at the same time the competitor will also improve from current state. So the organization has to maintain the quality of services while doing expansion.