Health Care Marketing, Research Paper Example

In healthcare industry the strategic planning process includes forecasting, setting objectives, implementation, monitor, scanning and evaluation. Healthcare marketing plays very critical role in this whole procedure. According to healthcare forecasting, hospital should consider and emphasize on future practices. For instance, if HCO forecasts high demand of childcare then it will set up pediatric centers. If HCO anticipate that in the next five years, their patients’ average income will be same or may be fall then HCO will make attractive premium terms by changing their strategies and services. If they predict that in the next five years, there would be great amount of avoidable diseases then HCO will present preventive methods by advertisement to potential patients. All of these measures that HCO is going to take are the marketing measures. To strengthen the HCO strategic planning process, marketing mix can be used.

The healthcare organization we picked is Kaiser Permanente. It is the largest nonprofit healthcare maintenance institution in America. Currently, they insure roughly 8.2 million members in 9 states reach its necessary goals. Its marketing technique is connected closely to its strategic planning method.

Product

Kaiser was facing many accusations regarding their examination room which was very small and the doors were heavy for wheel chair patients and there was no parking nearby. Kaiser planned a 12 point programs in which it presented their facilities problems through California. Their employed advisers eliminated architectural barriers and implemented crucial diagnostic equipment. Additionally, Kaiser Staff members, nurses and doctors, obtained training to assist disable patients properly. Due to inability of facility, Kaiser got very bad reputation, but the enhancements require to be portrayed efficiently and channels of communication must remain open with the patients that are wheelchair bound (Dea, 2010).

Price

Kaiser’s pricing method sustains its strategic method. Buyers as well as advisers have showed worry that the pricing technique of Kaiser isn’t clear. In order for Kaiser to come out clean, it created the NPS (National Pricing Solution) pricing. The NPS is not like Kaiser Permanente‘s current ACR (Adjusted Community Rating) strategy. ACR was unable to compare Kaiser Rates with other rates. In order to increase their yearly health premium rates, Kaiser recognized the fact that employer need more detail and industry standard data. “This is a system of communication that pursues to increase the clarity of Kaiser pricing method and enabling direct observation with additional plans. The communication method is to display Kaiser as a more clear corporation” (Strandberg, et. al, 2010).

Place

If Kaiser wants to remain competitive then it should prefer updated distribution system. To improve their request for proposal (RFP) with brokers and consultants and to successfully distribute their products, they have decided to use BenefitPoint utility. “BenefitPoint can be used for middle market and on the scale of large groups in California to different benefit firms like Mercer HR Consulting, Gallaghar Benefit Services and Lockton benefit group” (Managed Care Weekly, 2003).

With this update Kaiser Customers can take advantage to getting immediate access to products and information through a consistent request format. With web based technology, the BenefitPoint utility offers data management and customer service tools, for instance, renewal process and improvement of RFP as well as operational advantages. This whole system will help to improve the efficiency of Kaiser sales process and better work relationship with brokers.

Promotion

Advertisements support Kaiser strategic plan, which was presenting that all the decision are in the hands of doctors. These add backfired and consumer group requested documents that can be shown in the next trial to show that decisions were not only in the hands of administration but also in the hands of accounting firm. The documents that show the guide to care and hospital length of stays which was created by a consulting firm Milliman & Robertson Inc. can be used to make their lawsuit against false-advertising. Consumer groups also states that Kaiser encourage cost cutting behavior of physicians for instance they will hold 30 percent of physician’s salary if cost targets were not met. Kaiser has to come out clean. Advertising always backfires and is not productive and causes erosion in the reputation of the HMO.

References

Managed Care Weekly, (2003), Carrier arrangement signed with Kaiser, Retrieved from https://api.turnitin.com/viewGale.asp?r=36.1040601712347&svr=1&session-id=27fac091bf5f80ac795a7e23544ade14&lang=en_us&oid=14234894&key=854ae83247d5bf982f8d00461edb9af6

Strandberg-Larsen, M., Schiøtz, M., Silver, J., Frølich, A., Andersen, J., Graetz, I., & … Hsu, J. (2010). Is the Kaiser Permanente model superior in terms of clinical integration?: a comparative study of Kaiser Permanente, Northern California and the Danish healthcare system. BMC Health Services Research, 1091.

Dea, R. A. (2000). The Integration of Primary Care and Behavioral Healthcare in Northern California Kaiser-Permanente. Psychiatric Quarterly, 71(1), 17.