Memorial Hermann Case Study Marketing Plan
Memorial Hermann’s leadership has shifted from its emphasis on building market position and financial strength to building an organization that can thrive in an environment where providers are more accountable and more at risk for performance.
According to Memorial Hermann executives, area capacity is 4,000 beds over the needed level right now and there are five new acute-care hospitals coming online this year. Memorial Hermann has 1,000 of its total 2,920 system-wide beds vacant most days.
Memorial Hermann does not have the right number of physicians, beds, operating rooms, MRIs and other facilities for a new type of payment environment where the financial incentives will change. The distribution of facilities, which works well in the current fee-for-service environment, is too expensive for the anticipated
MEMORIAL HERMANN …show more content…
The area’s population continues to grow – there were 5.9 million residents of the Greater Houston metro area in 2009, with projections that the population will reach 6.6 million by 2014. More than one-third of the population is Hispanic.
Houston’s population is younger than the national average with 8.6 percent over 65 years of age (compared with just over 13 percent nationally). More than one-third of the population is uninsured (self-pay), and this percentage is growing rapidly. Memorial Hermann’s payer mix in 2010 (dollars) included 39 percent private health plans, 34 percent Medicare, 15 percent Medicaid, and 9 percent self- pay/uninsured.
The Houston health care marketplace is highly fragmented in terms of physicians; the vast majority of physicians are in small, independent practices. Many private practice physicians voice strong feelings against the trend for physicians becoming employees of health systems. Physician/health system relations in Houston are also influenced by the fact that Texas prohibits the corporate practice of
According to Memorial Hermann executives, area capacity is 4,000 beds over the needed level right now and there are five new acute-care hospitals coming online this year. Memorial Hermann has 1,000 of its total 2,920 system-wide beds vacant most days.
Memorial Hermann does not have the right number of physicians, beds, operating rooms, MRIs and other facilities for a new type of payment environment where the financial incentives will change. The distribution of facilities, which works well in the current fee-for-service environment, is too expensive for the anticipated
MEMORIAL HERMANN …show more content…
The area’s population continues to grow – there were 5.9 million residents of the Greater Houston metro area in 2009, with projections that the population will reach 6.6 million by 2014. More than one-third of the population is Hispanic.
Houston’s population is younger than the national average with 8.6 percent over 65 years of age (compared with just over 13 percent nationally). More than one-third of the population is uninsured (self-pay), and this percentage is growing rapidly. Memorial Hermann’s payer mix in 2010 (dollars) included 39 percent private health plans, 34 percent Medicare, 15 percent Medicaid, and 9 percent self- pay/uninsured.
The Houston health care marketplace is highly fragmented in terms of physicians; the vast majority of physicians are in small, independent practices. Many private practice physicians voice strong feelings against the trend for physicians becoming employees of health systems. Physician/health system relations in Houston are also influenced by the fact that Texas prohibits the corporate practice of