With the creation of Downtown Health Clinic, Perpetual Mercy Hospital believed a bigger base for referrals and expansion would be on the horizon. The DHC was supposed to be a great project which would help Perpetual Mercy Hospital with its patient base. It would increase the amount of referrals, the amount of patients; opening up many more business opportunities.
“This clinic is supposed to become self-supporting after three years of its opening (Perpetual Mercy Hospital, 2010). ” Unfortunately, due to surprising news, this horizon may seem farfetched.
According to the assistant administrator of DHC, a rival clinic is in the midst of opening up a new clinic within a short distance from DHC. It is expected that this competition will impact the emergency, worker’s compensation and employment or insurance physicals as well as on the existing and potential consumers of its services (Boone, 2006). Analysis Different innovations and features of healthcare have been designed to give some freedom to patients to receive healthcare, as well as giving health care providers some freedom on where to practice.
These different sectors make health care use business and marketing models to enhance their practices by attracting different patients and competing with other practices. One innovation includes the presence of HMOs and PPOs. Health maintenance organizations (HMOs) and preferred provider organizations (PPOs) are two types of preventive health programs.
The HMOs are aimed at increasing preventive health care by providing medical services as needed for a fixed monthly charge reducing the lead time of hospital in patients and medical bills. PPOs create mutual legal relationships between health care providers and large employers’ organizations.
These relationships offer subsidies for using preferred providers instead of binding patients to specific providers. Ambulatory Health Care Services and Facilities are another innovation created by the health care system. Services through such are offered to patients who necessitate an urgent or periodical basis and include physical examinations, treatment of minor emergencies and common sicknesses.
Requirements for this sort of facility is being open 24 hours a day and being fully equipped with instrumentation needed for a wide variety of procedures. Ambulatory Health Care Services are able to succeed because of the advances in technology. Technology in this day and age has enabled procedures to become more efficient and time and space saving. This is a great benefit for Ambulatory Health Care Services. Root of the Problem
Since this new facility will address the needs of emergency, worker’s compensation and employment or insurance physicals, it means more patients focused on such problems will be more apt to go to the new facility. Perpetual Mercy Hospital is general hospital which is not specifically geared toward the above mentioned. This may not necessarily pull away existing patients, but will certainly not attract new customers who are seeking the above mentioned services. Alternatives Perpetual Mercy Hospital is not necessarily lost in this situation.
There are a lot of different ways in which it can compete with the rival clinic and win. Developing a liaison with surrounding business to treat their employees is a great way to ensure an apt patient load. This is a good marketing strategy because it can cause for a greater referral base if the business are pleased with the services of DHC.
DHC should start special promotions and rates to attract new customers. Decreasing the wait time in the waiting room is such a great way to keep patients and create more referrals. People hate waiting in waiting rooms for hours.
The quicker they are seen, the happier they are. Hiring physicians who have a polite and pleasant demeanor is another key strategy to keeping patients and expanding the chance for referrals. Conclusion In any type of business, there is always competition. On the other hand, there are so many ways to reduce competition and eliminate it. By expanding on a business’ own strengths and working on its weaknesses, a rival or competitor will not seem much like a threat. Often times, a rival may be on a different level or incomparable in certain aspects.
For example, DHC of Perpetual Mercy Hospital is not an ambulatory health center as is its rival. Hence, other changes must be made to compete on the same level or provide an alternative. By following the above alternatives, DHC under Perpetual Mercy Hospital, can reduce the threat by its rival clinic and have a bigger and happier patient load. Bibliography Boone, P. &. (2006). Contemporary Business, 11th Ed. New York: McGraw Hill. Perpetual Mercy Hospital. (2010, 20 March). Retrieved November 10, 2010, from oppapers: http://www. oppapers. com/essays/Perpetual-Mercy-Hospital/290057.