Marketing Healthcare

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Marketing is unethical” was a frequent refrain, when very few hospitals realised that it was necessary to incorporate marketing as an integral function in the hospital operations. But the major argument at that time lay in understanding whether this professional orientation was really required for its viability, profitability and sustainability.
Both profit and non-profit organisations need to generate revenues and profits for meeting their operational expenses and for providing newer services to patients.
This argument however became favourable in the late nineties as corporate companies ventured into the hospital industry, apart from the ongoing mergers and acquisitions that were already taking place at that time.
Healthcare marketing is dependent on 3 key areas that allow for sustained conversations. See the video above for more..
‘Think about your reach and its efficacy, every time you plan a campaign. The wrong set of data points will offer only the wrong outcomes…everytime; without fail.’
This argument however became favourable in the late nineties as corporate companies ventured into the hospital industry, apart from the ongoing mergers and acquisitions that were already taking place at that time.
Even the TPAs started building tie-ups with corporate clients and there was already an abysmal utilisation of resources in the existing hospitals. In addition to the above a major factor that contributed to the acceptance of marketing in hospitals was an increase in the delivery of services.
‘Perception of patients’ was another important consideration for hospitals, as they felt that the patients would take them as profit oriented organisation rather than service oriented organisation. Ultimately, marketing was accepted only by a few while the others discarded the concept.
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Hospitals who accepted marketing also carried out their functioned by concentrating around corporate clients. Lately it has been felt that many Indian hospitals have a dilemma regarding the functions of marketing. In an era where hospitals are experiencing a major shift in their clientele, they are worried more about the patients’ perception of hospitals and therefore the concept of brand restructuring and brand engineering is vital.
Broadly hospital marketing has a three dimensional role:
External marketing functions:
Marketing survey:
Existing services available in clientele zone
Analysis of disease
Prevalent rates/ Epidemiological Studies
New service developments according to market needs
Market brand preference and Repositioning strategy for the services.
Changing customer choices e.g. bloodless surgeries and daycare wards
Segmentation, targeting and positioning of hospital in community.
Sales promotion:
Direct Selling:
Increasing the patient base by developing brand preference, loyalty and equity.
Personal selling
Convincing medical professionals over the technological edge as well as the humanitarian touch to the delivery of services.
Carrying out CME and camps
Indirect selling:
Tie-ups with corporate companies and third party administrators
Offering health check up schemes and packages for various surgeries.
Advertising:
Press releases, distribution of brochures and leaflets, newsletter, digital marketing and media campaigning.
Public relation:
Developing and maintaining relations with doctors, patient’s attendants, governmental and regulatory bodies and with the press.
Referral Network development:
Development network with nursing homes, diagnostic centres, general practitioners, secondary care units, TPAs, HMOs to serve as referral base to hospitals.
Marketing Audit:
Marketing audit to identify strength, weakness, opportunities and threats for the organisation.
Internal marketing functions:
Setting of long term and short term objectives.
Development of long term and short term objectives.
Development and implementing marketing strategies for various services offered with budgetary recommendations and implementation schedules.
Identification of new segments and clientele areas.
Recruitment of hospital representatives.
Feasibility study for new service development
Resource utilisation studies
Evaluation of revenue generation and identification of department with maximum revenue generation.
Cost benefit analysis
Developing credit facility plans for corporate clients.
Brand restructuring and brand repositioning.
Interactive Marketing Functions:
Patient satisfaction studies
Co-ordination with the finance department for allocation of budget for marketing activities.
Co-ordination with all clinical and non-clinical departments to achieve the objective to quality care to patients.
Both profit and non-profit organisations need to generate revenues and profits for meeting their operational expenses and for providing newer services to patients which is possible only when hospitals adopt cost containment methods, utilise capacity of their services and increase their clientele base. Applications of marketing with proper orientation can serve the purpose.
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