A Fresh Look at the 7 PS of Healthcare Marketing, Research Paper Example

Abstract

This research encompasses an exploration into how the 7P elements of service marketing are applicable to the functioning of St. David’s HealthCare, Austin Texas. Distinctly, the exploration would embrace why this information is important. Methods of how the research was conducted will be highlighted. Important stakeholders’ contribution to the service identified will be given attention. Precisely, an extensive discussion detailing my findings and subsequent implications they have on the particular health care entity as well as health care generally will be analyzed. In concluding the research a recap of key learning points  would be undertaken after the potential value of  this information along with  how the skills  that have been discovered are utilized by the identified organization will be evaluated. A an evaluation of St. David’s HealthCare, Austin Texas will be conducted.  The impact of its utilization of the 7ps  marketing will be linked to immediate health care audiences for further scrutiny.

Introduction

Health care in the twenty first century has undergone immense changes internationally, especially within the past two decades. Like a slow moving glacier, healthcare systems across the world have thawed off into torrents of intense activity. Sheingold and Hahn (2014) contend that healthcare systems internationally now in the 21st century are geared towards improving health care quality. This is undertaken as primary health care ventures in preventative programs and health promotion projects. Prior to the twenty first century when there was no distinct scientific evidence of how to improve quality of care through systems thinking emerging from health care function, attempts at delivering quality care were conducted through a series of trial and error intervention. Essentially, they appeared incompatible with health care improvement in itself (Sheingold and Hahn, 2014).

These authors continue to advance that the philosophy of health care quality actually began with Florence Nightingale.  Reasons for this assumption are first, in her time no health care organizations or systems existed, but a single woman dedicated to caring for fallen soldiers. Specific accounts relate to when British troops, in 1854 were in combat with Crimea and neighboring Russian territories. There was an outbreak of cholera and diarrhea among British troops, which claimed enormous amount of lives. The British government rushed a group of nurses to join Nightingale in managing the outbreak. It was reported that within six months the death toll drastically dropped from 42.7% to 2.2% (Sheingold and Hahn, 2014). This clearly proves that her work represented quality healthcare.

With reference to United States of America there is a history of health care quality being rationed according to the type of insurance the person holds. There have been several Americans without health insurance. As such, the health care  isquality minority groups receive  is of a very low quality due to them being uninsured. Apart from quality of healthcare being influenced by health insurance coverage, there has been a history whereby person’s ethnicity impacted their quality of care. During the segregation period blacks did not receive the same quality of care as whites (Igel, 2008).

Major attempts at health care reform during the late 20^th century and early 21^st centuries have improved both quality and accessibility to healthcare in America. The Affordable Care Act as well as managed care polices have regularized many health disparities. While in the twenty-first century revolutionized health care accessibility was realized there are still sections of the society, some 11 million people who live in the country and have very little access to health care much more one of quality. They are classified undocumented immigrants (Igel, 2008).

It is hoped that healthcare systems across America are of such that accessibility to quality health care becomes available and affordable to everyone who lives in the society since it is simply a basic human right. The following pages of this research will specifically examine the extent to which St. David’s HealthCare, Austin Texas is planning for and marketing quality healthcare for everyone in the nation irrespective of race, religious affiliation immigration status, political affiliation or insurance coverage in the application of 7P elements of service marketing. The research was conducted by searching Google scholar using the keywords 7p elements of service marketing and synthesizing the information. The same was done for St David’s healthcare, Jackson health care system and all other sources mentioned in this essay.

Discussion on 7P elements of service marketing

The 7p elements of service marketing is a theory advanced by experts claiming it to be a marketing mix emerging from the 4p model price, promotion, place and product. The model has been further developed to include three more elements merging it into 7ps by adding people, processes and physical evidence (Kotler, 2012).

The first P pertains to product. In healthcare the product relates to interventions such as medical, surgery, emergency management along with preventative measures such as vaccines and education. As a marketing strategy in planning the product must be desirable and meet consumers expectation. Consumers of healthcare are termed patients and clients who access the services of healthcare providers at different levels of the health care strata, primary, secondary and tertiary (Kotler, 2012).

Second on the ps list is place. Product and place are closely related in the planning and marketing mechanism. It is recommended that the product should be available in a place where it is easily accessible to consumers. This means that healthcare services such as hospitals, clinics, doctors’ offices and other types of related facilities must be is located where patients and users of the commodity can reach without difficulty. Essentially, when evaluating health care quality hospitals ought to stretch across geographic locations to capture a wide cross section of clients (Kotler, 2012).

Thirdly, is the crucial p, price. In America’s health care system this is a huge problem. The big question is how many people in the society could afford quality health care? This is irrespective  of whether they are insured or uninsured. The price philosophy recommends linking the product to price, that the product must be compatible with the price consumers are asked to pay. Therefore, it must reflect a very high quality of care if patients are asked to pay these high costs for. Currently unlike many other nations in the world people in America often have to file Bankruptcy to make healthcare payments even with some of the best insurance policies. It does not mean that the product should be cheap, but of high quality and affordable to consumers (Kotler, 2012). In the next section of this research how St. David’s HealthCare, Austin Texas manages health care pricing will be carefully scrutinized.

The fourth p pertains to promotion. This involves advertising, promotion of sales, personal selling strategies and more recently, communication applying social media technology.

When healthcare was considered a social service as it still is in some countries there not such emphasis on promotion since services are limited to government owned products. However when healthcare has been revolutionized into a business enterprise with immense completion on the marketplace promotion becomes mandatory. Planning and marketing health care in America to ensure profitability is crucial to American health care system. Even with the Affordable care act provisions health care organizations have to monitor their personal health care budgets to function with some degree of profitability (Kotler, 2012).

Fifth, this p relates to people. In the 7p diagram it could be noticed that these theorist linked people to product and physical evidence. This is interpreted that people in this sense are the ones who function as health care mangers such as nurses, doctors and advanced nurse practitioners. Companies and health care organizations depend on people for their success. Often they function as stakeholders being organization board members and investors in the particular health care entity (Hirsch, 2010).

The sixth p indicates how the processes ought are being conducted. Experts express that service delivery is executed in the presence of customers who with reference to health care are patients and clients. For example when someone visits a primary care physician, the provider communicates with the customer/patient concerning the progress made from the last visit. Medications may be re-ordered or new ones given and instructions for follow up care delivered. This is a basic health care process whereby the customer is present. Other procedures include those conducted by nurses and surgeons when clients are hospitalized ( Hirsch, 2010).

The seventh and final p relates top physical evidence. Almost every service involves physical elements to some degree whether the products customers are being charged for are intangible. For example, if a patient is referred for counseling services or psychiatric evaluations. The physical evidence for that service rests with the provider. When this client leaves the office he/she might be given a bill showing that the service was paid for. However, there is still no profound evidence that the services were delivered and the extent it was justified (Hirsch, 2010).

Application of 7ps to St. David’s HealthCare, Austin, Texas

Introduction

St. David’s HealthCare (SDH) is classified as one of the major hospital systems in the Texas community. Its uniqueness lay in the partnership with two main entities namely, St. David’s Foundation, Hospital Corporation of America (HCA) and Georgetown Health Foundation, which can be considered is major stakeholders in the business. St David’s Health care, Austin, Texas is a private employer and the fourth largest is the State of Texas. In 2013 the business net revenue was estimated $1.4 billion. The system’s highest ranking official is its president or chief executive officer, David Huffstutler. The mission is to provide supper standards that save lives (Baldrige Performance excellence program, 2014).

Utilization of 7ps in St David’s healthcare administration 

Product: Services delivered by St David’s health care is the product, which is sold to the public as health care. They include medical services attending to patients with various types of diseases in their hospital locations and clinics.  There are also surgical, obstetrics, gynecology, pediatric, rehabilitation and emergency/urgent care products. The superior standards that save lives product is a composite of the Medicaid and Medicare core service product.

Place: With respect to places the health care system has erected structures throughout Central Texas. Specifically, the healthcare business proudly delivers services from six hospitals an  ambulatory surgery centers as well as four free-standing emergency departments and urgent care clinics. The entity also provides rehabilitation services through its facilities along wand various and multiple physician practices through the State of Texas

Price: It was difficult retrieving any specific information from the internet regarding pricing of products. Attempts at obtaining information via an interview were unsuccessful since this information was deemed private and confidential. However, Medicaid and Medicare recipients have stard pricing for their products. Patients with additional insurance coverage are billed according to what they are covered by their policy.

Promotion: Product promotion is conducted through advertisement on the internet. There is s website where products could be viewed and valuable information obtained. The company has employed sales and marketing managers along with a public relations officer and staff. These employees interface with the public regarding desires and concerns

People: St David’s health care organization management recognizes the value of people. There is an employee base of approximately 8,000 or more. The business offers contract and welcomes volunteers.

Processes: Service delivery is conducted in the presence of customers who are the process interveners of the product. A service excellence initiative has been established at St David’s healthcare. Reports from a Gallup survey shows where St David’s health care reached the top 10 rating for customer satisfaction in the State of Texas and 25% nationally for emergency and surgery service processes.

Physical Evidence: The physical evidence could be expressed in consumer satisfaction polls. Polls show that 25% of customers were likely to recommend St David’s health care. This was not very impressive (Baldrige Performance excellence program, 2014).

Analysis

The thesis statement guiding this research as expressed read, it is hoped that healthcare systems across America are of such that accessibility to quality health care becomes available and affordable to everyone who lives in the society since it is simply a basic human right. From an examination of St David’s health care system’s functions, there is limited evidence that the health care system is one in which accessibility of quality affordable health care services is available to everyone in the community.

While the goal is excellence for customers, being a private entity it is highly likely that the general public cannot access services offered except their insurance coverage is appropriate. This is unlike a government owned or partially owned health system such as Jackson Health care, which is a national health system with international credibility. Access to a Jackson card is available to persons who are insured or uninsured. There are a wide range of products available to the public s

The 7ps application is extensive and visible within Jackson health system despite a few financial setbacks emerging in some states. Politics play an important role regarding who access health care and who does not. Health systems are forms of structured inequality within the society and reflect the nature of equitable services. Jackson health care and St David’s health systems are two dichotomies of health service within United States, to which experts ought pay  close attention in their efforts at providing accessible and affordable quality health care to all people living in United States of America.

The focus of this discussion pertained to accessibility of affordable quality health care to all people living in United States of America. An emphasis was placed on application of 7ps service marketing in capturing an un-serviced market of consumers, who need quality affordable health care in the country. St David’s health care was chosen as a sample health care organization for examining application of 7ps in capturing an un-serviced population of over 13 million persons inclusive of uninsured Americans and people classified undocumented immigrants living in the country.

There was no evidence that their application of the 7ps service marketing model targeted this population of consumers. An alternative was briefly cited being the Jackson Health Care system a partial private and government enterprise with strong stakeholder interests. The recommendation is that policy makers should target this market with regards to such a product in serious demand, as quality affordable health care in United States of America.

References

Baldrige Performance excellence program ( 2014) St David’s Health care. Retrieved on September 14^th, 2015 from http://www.nist.gov/baldrige/award_recipients/st-davids-healthcare.cfm

Hirsch, L. (2010). A Fresh Look at the 7 Ps of Healthcare Marketing. Health Care Success scientific marketing that delivers to patients

Igel, L. (2008). The history of health care as a campaign issue  Physician Executive 34 (3): 12–15.

Jackson Health System (2015). News and Information. Retrieved on September, 14^th, 2015 From http://www.jacksonhealth.org/home.asp

Kotler, P. (2012). Marketing Management. Pearson Education Sheingold, B., & Hahn, J. (2014). The history of healthcare quality: The first 100 years 1860–1960.International Journal Of Africa Nursing Science. 1, 18-22