Case of Perpetual Mercy Hospital
Case of Perpetual Mercy Hospital
Problem
The broad focus of this case is one of strategy planning. Perpetual Mercy Hospital has to determine the best course of action to help the Downtown Health Clinic achieve its stated objectives of expanding the hospital’s referral base, increasing referrals of privately insured patients, establishing a liaison with the business community, and becoming self-supporting within three years of its opening. This last objective is jeopardized by the possibility of a competing clinic opening 5 blocks north of the DHC’s location. The underlying problem is that the DHC may not be self-sufficient within the projected timeframe, regardless of competition.
Alternatives
The following alternatives have been identified for this case:
1. Selling the Downtown Health Center to competitor
2. Adding gynecology services
3. Developing employer services through promotion
4. Extending hours of operation
5. Combining options 2-4
Recommendation
Our recommendation is option 5. This alternative presents the DHC with the best possibility of achieving its stated objective of self-sufficiency in 2 more years.
Customers
TARGET MARKET:
The potential users of DHC consist of 11,663 office workers, young people or upwardly mobile families from the cities, that are expected to grow 6% per year.
CUSTOMER ATTITUDE:
Increase of new family/young people in downtown. Among 400 people interviewed, 64% would use or try DHC if necessary, even if they have a regular physician. The expected frequency of DHC use for personal illness/exam is once every other year for 60% of the patients (both female and male), once per year for 25%, twice per year 10% and three or more times per year for 5%.
Furthermore, people interviewed in total are 256, composed of 160 (male) and 240 (female), said that they would use or try the DHC if necessary.
CUSTOMER PROFILE:
Office workers (employees/workers) are divided into clerical 48%, professional/technical/managerial
Problem
The broad focus of this case is one of strategy planning. Perpetual Mercy Hospital has to determine the best course of action to help the Downtown Health Clinic achieve its stated objectives of expanding the hospital’s referral base, increasing referrals of privately insured patients, establishing a liaison with the business community, and becoming self-supporting within three years of its opening. This last objective is jeopardized by the possibility of a competing clinic opening 5 blocks north of the DHC’s location. The underlying problem is that the DHC may not be self-sufficient within the projected timeframe, regardless of competition.
Alternatives
The following alternatives have been identified for this case:
1. Selling the Downtown Health Center to competitor
2. Adding gynecology services
3. Developing employer services through promotion
4. Extending hours of operation
5. Combining options 2-4
Recommendation
Our recommendation is option 5. This alternative presents the DHC with the best possibility of achieving its stated objective of self-sufficiency in 2 more years.
Customers
TARGET MARKET:
The potential users of DHC consist of 11,663 office workers, young people or upwardly mobile families from the cities, that are expected to grow 6% per year.
CUSTOMER ATTITUDE:
Increase of new family/young people in downtown. Among 400 people interviewed, 64% would use or try DHC if necessary, even if they have a regular physician. The expected frequency of DHC use for personal illness/exam is once every other year for 60% of the patients (both female and male), once per year for 25%, twice per year 10% and three or more times per year for 5%.
Furthermore, people interviewed in total are 256, composed of 160 (male) and 240 (female), said that they would use or try the DHC if necessary.
CUSTOMER PROFILE:
Office workers (employees/workers) are divided into clerical 48%, professional/technical/managerial