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business
health care market strategy
Questions and Answers of
Health Care Market Strategy
3.Does the sales force show high morale, ability, and effort? Is it sufficiently trained and motivated?
2.Is the sales force organized along the proper principles of specialization (e.g., territory, market, service line)?
1.Is the sales force large enough to accomplish the organization’s objectives?
6.How would a higher or lower price affect demand?
5.How are price promotions used?
4.How are the organization’s pricing policies viewed by patients? Physicians? Third-party payers? Competitors? Regulators? Managedcare organizations?
What have the price trends been for the last 5 years?
2.How are prices for services determined? How often are prices reviewed? What factors contribute to a price increase or decrease?
1.What is the pricing strategy of the organization? Bundled pricing? Center of Excellence contracting? Value-based?
8.Does the organization have any other features that individualize its services or give it an advantage over competitors?
7.What is the history of the organization’s major services?
6.What are the organization’s policies regarding number and types of services to offer? Regarding needs assessment for service addition/deletion?
5.Which services are most heavily used? Why? Are there distinct groups of users? What is the profile of patients/physicians who use the services?
4.What is the total cost per service (in use)? Is the service over- or underutilized?
3.How are the organization’s services superior to or distinct from those of competing organizations? What are their weaknesses? Should any service within the service line be phased out? Should any
2.What are the general outstanding characteristics of each service?
1.What are the organization’s services, both current and proposed?
17.Does the organization have an adequate marketing information system to meet the needs of managers in planning and controlling various markets?
16.Does the organization carry out periodic studies to determine the contribution and effectiveness of various marketing activities?
15.Does the organization implement control procedures (e.g., monthly, quarterly) to ensure that its annual objectives are being achieved?
14.Does the organization develop an annual marketing plan? Is the planning procedure effective?
13.Are the marketing resources allocated optimally to the major elements of the marketing mix (i.e., service quality, pricing, promotion, and distribution)?
12.Are the marketing resources allocated optimally to the various markets, territories, and services of the organization?
11.Is the organization allocating enough resources (or too many) to accomplish its marketing tasks?
10.What is the organization’s core strategy for achieving its objectives, and is it likely to succeed?
9.Are the marketing responsibilities optimally structured to serve the needs of different activities, products, markets, and territories?
8.Are the other persons who are directly involved in marketing activities competent? Do they need more training, incentives, or supervision?
7.Does the organization have a high-level marketing officer to analyze, plan, and implement its marketing work?
6.Are policies and procedures in place to coordinate the marketing activities with the other ongoing activities of the organization?23
5.Is market research appreciated as an ongoing task necessary for the development of effective marketing plans?
4.Does the person with marketing responsibility report directly to the CEO or top administrator?
3.Are there specialized training programs for key personnel that emphasize the marketing concept and help develop a thorough understanding of how marketing integrates into the organization?
2.Do the manager and other key personnel have marketing experience?
1.Does the marketing department have a key role in the planning activities of the organization?
12.Have there been any fluctuations in revenue? If so, what caused them?
11.Is the total volume (gross revenue, utilization) increasing or decreasing?
10.How successful has the organization been with the various services it has promoted?
9.What is the return on investment?
8.Have there been any problems with accounts receivable?
7.How has it been capitalized?
6.What has the financial history of the organization been?
4.What has the nature of its growth been?
3.When and how was it organized?
2.How has the organization changed over the last decade?
1.What has the historical purpose of the organization been?
13.Who are the customers served by the industry?
12.Might competitors in other geographical regions or other segments who do not currently compete in the organization’s markets or segments decide to?
11.How do competitors (segment/price) advertise?
10.Is competition on a price or nonprice basis?
9.What are the choices afforded patients? In services? In payment? In terms of access?
8.What service innovations could replace or reduce the sales of the organization’s services? When will these products be commercially feasible? (Information about potentially competitive services
7.What other services or new technologies provide the same or similar functions? What percentage of total market revenue does each substitute product have?
6.What about companies on the periphery—those that serve the same customers with different but related services, including related technologies?
5.Are other companies likely to be enticed to serve the organization’s customers or markets? What conglomerates or diversified companies may be attracted by the growth, size, or profitability of
4.What trends can be foreseen in competition? What is the basis of competition?
3.Who are the organization’s major competitors?
2.What is the organization’s position (size and strength) in the market relative to competitors?
1.How many competitors are in the industry? How are competitors defined? Has the number increased or decreased in the previous 4 years?
18.Are there deficiencies in servicing or assisting customers in using the service?
17.What service research and improvements are planned?
16.What is the life cycle of the service?
15.What circumstances force customers to turn elsewhere for help in using the service, or does the organization provide the support services to facilitate customer or patient use to make the
14.What reinforces the customer’s faith in the healthcare organization and its service mix?
13.What is the overall reputation of the service in each segment?
12.What are the customer attitudes (e.g., brand awareness, brand image) in different segments?
11.What are the requirements for success in each market?
10.What is the organization’s market standing with established customers in each segment (e.g., market share, pattern of repeat business, expansion of customers’ product use)?
9.What are the reasons (e.g., service features, greater awareness, lower price, advertising, location of the clinic, or better access) different market segments buy the product?
7.Where do the patients come from geographically?
6.How fast and far have markets expanded?
5.What is the expected rate of growth of each segment?
4.What are the present and expected future profits and characteristics of each market or market segment?
3.What are the major segments (e.g., men, over age 70, new to the community) in each market?
How large is the realistic service area covered by the market?
3.Does (can) this program meet the minimum case volumes for accreditation? Do competitors meet the minimum case volumes?
2.What are the trends in recent regulatory rulings?
1.What kinds of external controls affect the organization? Local? State? Federal? Self-regulation?
89.2016 survey of health savings account—high deductible health plans. (February 2017). AHIP. Retrieved from https://www.ahip.org/wp-content/uploads/2017/02/2016_HSASurvey _Draft_2.14.17.pdf Notes
88.Rappaport, L. (2017, November 27). Consumers with high-deductible health plans could be smarter shoppers. Reuters. Retrieved from
87.More Americans pushed into high deductible health plans. (2018, February 22). Healthy Day. Retrieved from
86.Japsen, B. (2017, August 23). Employee out-of-pocket health costs will eclipse $2,500 next year. Forbes. Retrieved from
85.Hancock, J. (2016, August 9) Employee health care costs are expected to rise by 6% in 2017. Money. Retrieved from http://time.com/money/4445574/employee-health-costs-2017/
84.Naylor, M., & Kurtzman, E. (2010, May). The role of nurse practitioners in reinventing primary care. Health Affairs, 29 (5), Retrieved from
83.Harris, G. (2011, October 1). When the nurse wants to be called “doctor.” New York Times. Retrieved February 15, 2012, from
82.DNP fact sheet. (2017, June). American Association of College of Nursing. Retrieved from http://www.aacnnursing.org/News-Information/Fact-Sheets/DNP-Fact-Sheet
81.Freese, A. (2017, July 10). Contested surgery center wins approval of state regulators. Seven Days. Retrieved from
80.Remsen, N. (2015, September 16). Hospitals oppose proposal for an independent surgical center. Seven Days. Retrieved from
79.Dabora, M. C., Namrata, T., & Schulman, K. A. (2017, July 4). Financing and distribution of pharmaceuticals in the United States. Journal of the American Medical Association, 318(1), 21–22,
78.Colorado Business Group on Health. (2012). About. Retrieved February 15, 2012, from http://cbghealth.org/
77.Wingfield, N., Thomas, K., & Abelson, R., op. cit.
76.Jumping ship: Why hospitals switch EHR vendors & how to handle the aftermath. (2015, November 4). Becker’s health IT & CIO Report. Retrieved from https://www 78 Chapter 3 The Challenge of a
75.Squire, D., & Blumenthal, D. (2016, May 26). Do small physician practices have a future? The Commonwealth Fund. Retrieved from
74.Murphy, B. (2017, May 31). For first time, physician practice owners are not the majority. AMA Wire. Retrieved from
73.Ornstein, C. (2016, May 27). Doctors fire back at bad Yelp reviews—and reveal patients’ information online. The Washington Post. Retrieved from
72.Sun, L. H. (2015, August 5). You can now look up ER wait times, hospital noise levels and nursing home fines on Yelp. The Washington Post. Retrieved from
71.Ornstein, C. (2015, August 5). Stay far, far away and other things gleaned from Yelp health reviews. ProPublica. Retrieved from
70.Reddy, S. (2014, May 19). Doctors check online ratings from patients and make change. The Wall Street Journal. Retrieved from
69.Zak, A. (2014, October 30). Everett clinic the latest to begin listing costs of health care services online. Puget Sound Business Journal. Retrieved from
68.Ramey, C. (2015, August 26). Long Island hospital posts doctor ratings. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/long-island-hospital-posts-doctor-ratings-1440635377
67.Clark, C. (2016, July 21). When hospitals post doctor ratings, who benefits? inewsource.org. Retrieved from https://inewsource.org/2016/07/21/hospitals-doctor-ratings/
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