Perpetual Mercy Hospital - Problem Statement 2
Problem Statement The Downtown Health Clinic (DHC), opened in 1999 and overseen by Perpetual Mercy Hospital, is concerned about the possibility of a similar clinic opening five blocks away from their facility. The main concerns are that the new clinic may attract DHC’s current patients and that a similar clinic in such proximity could hinder financial and profitability progress. The situation and four possible alternatives were analyzed in order to arrive at a recommendation of how DHC can compete for their patients and continue to grow.
Situation Analysis Federal legislation in the 1960s provided funding for hospital construction and provided Medicare and Medicaid to those who could not afford health care. In the late 1980s and 1990s, the government began reducing health care costs, and many innovations in the hospital industry began to emerge, such as preventative health care programs and ambulatory health care services and facilities. These ambulatory health care facilities provide treatment on an episodic or emergency basis, and are split into two groups: minor emergency centers and clinics that focus on episodic care. These facilities usually applied innovative marketing tactics, including consistent logos, promotional incentives, and mass-media advertising. Advances in medical technology, miniaturization, and portability of medical equipment has significantly aided in industry growth (K&P, 229-230). Perpetual Mercy is a 600-bed, independent general hospital that is non-profit, debt-free, and has the highest occupancy rate among the city’s six general hospitals. The hospital’s DHC, an ambulatory facility, was opened in 1999 in order to offset the increasing dependency on patients with high Medicare coverage, which was not providing enough stable cash inflow. The DHC provides preventative health care, minor emergency treatment, referrals for acute and chronic health care problems, specialized employer services, primary health care
Situation Analysis Federal legislation in the 1960s provided funding for hospital construction and provided Medicare and Medicaid to those who could not afford health care. In the late 1980s and 1990s, the government began reducing health care costs, and many innovations in the hospital industry began to emerge, such as preventative health care programs and ambulatory health care services and facilities. These ambulatory health care facilities provide treatment on an episodic or emergency basis, and are split into two groups: minor emergency centers and clinics that focus on episodic care. These facilities usually applied innovative marketing tactics, including consistent logos, promotional incentives, and mass-media advertising. Advances in medical technology, miniaturization, and portability of medical equipment has significantly aided in industry growth (K&P, 229-230). Perpetual Mercy is a 600-bed, independent general hospital that is non-profit, debt-free, and has the highest occupancy rate among the city’s six general hospitals. The hospital’s DHC, an ambulatory facility, was opened in 1999 in order to offset the increasing dependency on patients with high Medicare coverage, which was not providing enough stable cash inflow. The DHC provides preventative health care, minor emergency treatment, referrals for acute and chronic health care problems, specialized employer services, primary health care