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- 1. Pate Memorial Hospital I. Summary of Facts A. Market – Health care services 1. Type of clients a. Business-initiated visits b. Worker's compensation activity c. Emergency visits d. Personal exams 2. Suburban areas a. Young, upwardly mobile families b. Inner-city residents c. Higher median age d. Higher incidence of Medicare coverage 3. Healthcare innovations a. HMO's b. PPO's c. Minor emergency centers d. Clinics with focus on primary/episodic care 4. Economic market a. Pure competition b. Competition does not affect the market price B. Product 1. Pate Health Clinic services 2. Benefits a. Core- Providing health services b. Preventive health care c. Emergency care d. Referral for acute and chronic health problems e. Specialized employer services f. Primary health care services (treatment of common cold) g. Basic X-ray and laboratory tests 3. PLC a. Maturity stage b. Many competitors with a focus on consumer loyalty C. Price 1. $50 personal illness/exam, $78 workers' compensation exam/treatment, $94 employment /insurance physical examination, $134 emergency 2. $137,280 in physician coverage, $43,720 professional fees, $76,500 lease, $46,894 supplies, $6,630 utilities, $168,376 personnel, $30,648 amortization, and $510,048 annual expenditures 3. $10,400 on weekly advertisements per year 4. $378,000 in revenue and $30,000 in net profit 5. Average revenue per patient visit was $67.90 6. Elasticity a. Inelastic demand b. Not sensitive to changes in price and people will always need health services D. Promotion 1. Informational advertising in weekly newspapers 2. Early centers marketing: branding, consistent logos, promotional incentives, mass-media advertising 3. Expansibility a. Relatively nonexpandible 2
- 2. b. Not affected by promotion and dictated by circumstances E. Place 1. Pate Memorial Hospital 2. Pate Health Clinic 3. Downtown, suburban areas 4. Channel: Pate Health Clinic - consumers/users F. Other 1. Growth of ambulatory health care services a. Advances in medical technology, miniaturization, and portable medical equipment b. Customers have adopted a proactive c. Growth of paramedical professionals and standardized treatments 2. Charter for the Pate Health Clinic a. To expand the hospitals referral base b. To increase referrals of privately insured patients c. To establish a liaison with the business community d. To become self-supporting three years after opening 3. Gynecological service facts a. 70% of visits are made by women under 35 b. Could add 2,000 more visits c. Average charge would be $104 per visits 4. Suggestions of the serving the downtown area a. Service hours b. Services offered c. Waiting time 5. Competition concerns a. Attract existing and potential patients b. Hamper PHC's progress towards service and profitability II. Problem/Opportunity A. Primary – Services offered B. Secondary 1. Gynecological services 2. Current hours of the clinic 3. Licensed physicians 4. Repeat patient visits 5. Competition with another clinic III. Recommended Action A. Primary – Change the services B. Secondary 1. Add gynecologist services 2. Change hours to 7am-7pm to obtain working individuals and lower waiting times 3. Add a second licensed physician 4. Create a referral program 5. Use the Bypass strategy