Wk 5- Marketing Mix Strategy
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MARKETING MIX
STRATEGY
Week 5- Group Assignment
APRIL 10, 2023
KIRSTEN MESTAYER, EVA GUTIERREZ-CRUZ, TARA DOHERTY-STURGIS, TAMARA ROBERTS, TATIANA
BUTLER, KAREN GONZALEZ
1
Kirsten Mestayer
Service Strategy:
The service strategy I have chosen to revise or renew is the decision to close the inpatient
behavioral health hospital. According to the case study, the board of directors at East Chestnut Regional Hospital (ECRH) chose to close the inpatient behavioral health hospital but kept the out-patient services open. Because of the last of inpatient clinics, they are unsure where clients in
a crisis scenario will go for inpatient treatment. Working in the adult behavioral health field there
is already a huge shortage with inpatient facilities for people battling forms of mental substance, and behavioral issues. I would propose the hospital to open a 24-hour Crisis Service Urgent Care. When a patient that is undergoing a psychotic break down, gets picked up by cops or ambulances, and is taken into the hospital where they will more than likely be PEC’d, which is when a physician can emergency put you on a 72 hour watch against you will, it can traumatize a
client. This service will give the client a 24-hour de-escalation period for the medical staff to try to calm the patient and not have them committed. The clinic would play a role like an emergency
room, where they would administer medicines and hopefully discharge them with an appointment for aftercare with ECRH’s outpatient services. Although it is costly to pay staff 24/7, it can benefit the hospital as well because of the internal referrals given to see outpatient treatment within the organization. There is no service locally besides emergency rooms that offer
this service, so there wouldn’t have much, if any, competition. Pricing Strategy:
Because of the comfort this service would provide, it could be charged at a more expensive rate to insurance companies. The time frame the clinic will provide will help the
2
insurance companies not have to pay for multiple days of inpatient care. The most expensive part
of running this clinic is hiring the appropriate number of staff. They will need 3 different shifts covered, along with on-call staff members. Also, they will pay for all operating cost from electricity, water, etc., and all insurances, such as liability. This crisis service will offer three different services that will be charged all separately. The initial contact is paid per diem with a rate of $360.97, a telehealth follow-up will be paid per 15 minutes with a rate of $19.44, and a community based follow-up appointment being kept will also be paid per 15 minutes at a rate of $26.06. The only guaranteed payout for the service is the initial contact because we can not control if a client keeps the other two follow-up appointments. I have a complete business, budget plan for this service because I was apart of the first company, granted by the state, to start
the first program. Placement Strategy:
East Chestnut Regional Health will distribute the new and revised service by writing a business plan and trying to retrieve government or state funded grants to start the process. Instead of opening a new oncology office, they could have used that building to have their crisis center and outpatient behavioral health services all together under one roof. By having these services away from all the other services will help to keep patients undergoing crisis scenarios away from just sick patients. This will help patients all stay safe because sometimes people in crisis black out and do not know what they can do to harm themselves or others. Because oncology is a booming field for East Chestnut Regional Health already, keeping it where it was previously located should not be an issue. Promotion Strategy:
3
To promote the crisis services, traditional marketing may not work. Even though it should still be done, most people battling severe behavioral health sicknesses are from a low income based environment. Many of them are homeless or in shelters, so they do not have access
to social media or the internet in general. The best route to take for this service is public relations. When coming up with marketing for my company’s budget, we made sure when spread
the services to all local government buildings, police departments, homeless shelters, clinics, hospitals, etc. Having a strategic budget and contract with local authorities and insurance companies can help with the marketing of the new services. These are the places where the word will likely be spread versus having it all over social media. Hosting a crisis promotional gathering, by offering free screenings, could also drive in clients and spread the word to people in need of things for free. Not only will the crisis clinic be promoted, but so will the outpatient services at ECRH. Summary of Feedback: The feedback I received from the two responses I got talked about the placement of the behavioral health clinic. I choose to put the behavioral health clinic where they are building the oncology department. I thought leaving the oncology department where it was, because it is already successful, was the best idea. By moving the behavioral health services to the 100-acre lot in Chestnut could bring in most clients. Their feedback was not very helpful because they were suggesting exactly what my paper already stated. I also disagreed with putting the bigger expenses on insurance companies because we would be helping the insurance companies save money. They would save money by not having to pay for inpatient care or long hospital stays for
clients needing to be de-escalated. It could still be slightly expensive for them because it will be like cramming days of de-escalated into a 24-hour time frame.
4
Eva Gutierrez-Cruz
Part I: Product Strategy
The product/services that I would choose to revise is the women’s services. The women’s
center has so many services to offer and a lot of potential that are in high demand in the community. The services that are being offered consists of female doctors, physicals for women, general gynecology services, a nurse help line, same day appointments, and much more. With these services, the Faith & Main studied the market, and it showed promising numbers that the women, even women across county lines, will come to visit the women’s center. With this alone in mind, it shows promise that this will be a very successful women’s center. This will also improve the quality of life for the consumers. It will enhance health benefits, customer satisfaction, and provide quality healthcare to the community. Luckily with these improvements we will be able to better attend the needs of the consumers and they will feel heard and feel that their needs are being attended to.
Part II: Pricing Strategy
The focus on the pricing strategy is to offer the lowest prices available while still providing the best quality of service to the consumers. The price is determined by level of satisfaction provided by the insurance kind and determined by the benefits. Looking at the payer mix, you can see most of the patients are covered by Medicare and lucking for the most part Medicare does cover everything. Which it then leads to Medicaid and commercial insurances. Just like Medicare, Medicaid is also covered and will pay for the services covered and offered by
the facility. With commercial insurances, you would base payments off of just the commercials insurance. You would look at the benefits that are being offered and see which ones are eligible and as well as see how much is covered by the insurance. With that information available, it is
5
then that the prices are determined at the lowest prices available. From there, they will work as they do today. Insurances will cover some percentage of the services and the consumer is responsible for the rest. Part III: Placement Strategy
For the placement strategy, the East Chestnut Regional Health System will need to collaborate with an internal marketing team and an internal internet advertising team to assist the
company in spreading diverse information about the new services. They will need to do this to boost financial gain and customer happiness while still involving existing and loyal customers. The internet strategy team will help make a website that provides all the information about the services that will be offered to the consumers. It will also offer the address, some contact information, and some insight on who the doctors and nurse practitioners will be providing the services. There will be ways to make appointments online and fill out new patient paperwork, to ensure an easier check in for the consumers and less wait time. All of this, and more, will help increase the visibility of the company’s products and services and ensure the best quality of care for the consumers. Part IV: Promotion Strategy
There are many ways to promote the women’s center. There will be brochures, catalogues, commercials, and many more visual merchandising that will be excellent in increasing product recognition. This will be an excellent and a sufficient way of educating the consumers about the services that are not being offered. Social media can have a big impact as well when it comes to promoting the women’s center. Nowadays people are on Facebook, Twitter, Instagram, Snapchat, and other social media platforms and with these it can ensure ads to be placed for the consumers of the community about the women’s center. As I had previously
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