Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Review the case study The Marketing Plan at Rivers and the Robot in Chapter 15. After reviewing the case, go to www.davincisurgery.com (Links to an

Review the case study The Marketing Plan at Rivers and the Robot in Chapter 15. After reviewing the case, go to www.davincisurgery.com (Links to an external site.)Links to an external site.. Assess the site. What social media tools are used to define, describe, and promote the robot?

Marketing and public affairs director Belinda Sheldon and media specialist Rick Stallings were the entire office staff for marketing and public affairs at Rivers Medical. Rick was staying late in the office because Belinda had been called to attend an impromptu strategy meeting that afternoon by the hospitals executive director. Rick knew that something was about to happen that would require him and Belinda to work quickly and expertly. He called his wife and told her to go ahead and have dinner without him. Hed be home later. Rivers Medical was a not-for-profit hospital with 237 licensed beds, more than 1,300 employees, and a physician medical staff of about 200. It served the local city and the rural surrounding towns in the rolling hills area of Tennessee. Its mission read: Rivers Hospital provides compassionate, quality healthcare services needed by the people of Tennessee in collaboration with other providers and community resources. Its vision read: Rivers is a comprehensive regional referral center committed to providing the finest in competent, courteous, and compassionate care. Its values read: These beliefs and values are the foundation of our mission and vision: CompassionWe care for others as if they are members of our own family. DignityWe treat every person with respect. ExcellenceWe continually improve our services to ensure the highest quality of care. EducationWe maintain a commitment to growth and learning. AccountabilityWe use resources wisely to ensure that services are consis- tently provided at appropriate cost. CollaborationWe work with others to improve the health status of the community. Belinda entered the boardroom and acknowledged each person as he or she entered. The Rivers strategic planning team was for the most part a collegial group that worked well together and liked working together. It was a good thing to work in an environment that encouraged input and lively discussion from all areas of the hospital, both clinical and administrative. Belinda and Rick attributed this positive culture to the executive directorPatrick Habeeb, who led the hospital with patients, physicians, the public, and payers in mind. He was known for asking purposeful questionsquestions that made others think about the mission, vision, and values of Rivers. He was kind and polite, and even though he was busy, he made others feel as though he had all the time in the world for them. Belinda nodded to the nursing director, who was followed by the medical director and whom Belinda called the C-suitethe chief financial officer (CFO), chief information officer (CIO), chief operations officer (COO), and Mr. Habeeb. Two OB/GYN surgeons accom- panied Mr. Habeeb. Belinda expected the meeting to be short, as was customary when Mr. Habeeb was in charge. He was simple, direct, and encouraged the rest of the strategy team to offer suggestions and formulate the plan. The nearest hospital to Rivers, Memorial Hospital, was a 25-minute drive away. It had acquired the da Vinci robot three years earlier, primarily for OB/GYN surgery (see www. davincisurgery.com). At that time, Rivers had considered purchasing the robot. However, given that the Rivers physicians did not seem interested in the robot and given the popula- tion of the city and the surrounding towns, the Rivers strategy team had determined that there would not be enough surgeon/patient demand to utilize the robotic services profitably. The CFO had reported that the cost of the robot would have been $1.5 million, with another $140,000 budgeted for the annual service contract. Rivers also had anticipated spending about $1,500 per year for replacement parts. Training would have involved the surgeons, the operating room nurses and staff, robotics program managers, and hospital administrators. The CFO had determined that the robot would need to perform about eight surgeries per week to be profitable. Belinda had reported that marketing research (an out- sourced phone survey of city residents) had indicated positive interest in the da Vinci robot and its potential for less invasive surgery. Marketing efforts would have been directed at television, radio, billboards, websites, and community events. Success would have been measured by the number of calls directed to Rivers call center (to track interest in robotic surgery), physicians responses, and the actual number of surgeries performed (with a goal of more than eight per week). A marketing budget of $40,000 to promote the da Vinci robot had been proposed. The end decision was that the team could not recommend the purchase at that time, particularly in light of Memorials decision to purchase it. However, within the last six months, the physicians who primarily had used the da Vinci robot left Memorial to practice on the West Coast. Hence, the da Vinci robot was not being used productively because the other surgeons at Memorial were not interested in learning how to use it; they were satisfied with laparoscopic surgery because it was mini- mally invasive as well. As a result, Memorial stopped leasing the surgical robot. Mr. Habeeb stated that three OB/GYN surgeons and two urologists at Rivers had let it be known that they would like Rivers to purchase a da Vinci robot. The two surgeons in attendance at the meeting spoke of the robots benefits and how they now supported and encouraged Rivers to purchase it. The da Vinci robot allowed for minimally invasive surgery, causing less pain for the patient and less scarring than conventional surgery caused. Theboard of directors at Rivers had decided to take advantage of this opportunity and had approved the purchase. The CFO reported that the costs had increased slightly since their first assessment three years prior. The purchase price was $1.7 million, with a service con- tract of $150,000 per year. Rivers also could anticipate spending about $1,500 per year for replacement parts. Moreover, the CFO reported that the robot would still need to perform about eight surgeries per week to be profitable. The meeting had been called that afternoon to get everyone started; they needed to start doing what they needed to do to prepare for the robots arrival, which was scheduled for delivery within the next month. Mr. Habeeb adjourned the meeting, and Belinda rose to leave; she and Rick had much to do to implement their original marketing plan. But Mr. Habeeb asked her to remain behind. After the room emptied, he informed her that he knew her budget had been com- mitted to other hospital marketing efforts and Rivers just didnt have the money to support her originally proposed $40,000 plan. We do not want to take away from your other proj- ects. Ill need you to work within a $2,200 budget, Belinda. I know we usually commit more resources, but we just cannot at this time. Belinda joined Rick in the office and told him what Mr. Habeeb had said. We have to write a whole new plan. Want to order a pizza? We have some brainstorming to do. Rick replied, Pizza is already on its way. I had a feeling we would have some work to do.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investment Analysis and Portfolio Management

Authors: Frank K. Reilly, Keith C. Brown

10th Edition

538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387

More Books

Students also viewed these Finance questions

Question

1. What kinds of goals work best to build a team?

Answered: 1 week ago