Case Study : Pate Memorial Hospital

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CASE SYNOPSIS

In mid-April 2000, Sherri Worth was faced with some very unsettling news about Pate Memorial Clinic’s future with a competitor potentially moving into the area. Worth was the assistant administrator at Pate Memorial Hospital (PMH) and was also responsible for the Pate Health Clinic (PHC). A study by the competitor was being done to see whether sufficient demand existed to establish a clinic 5 blocks north of PHC. The two biggest concerns in regards to the new competition were:

• The competitive clinic would attract current and potential patients of PHC.
• The competitor would provide similar services that could potentially hinder PHC’s progress toward accomplishing its service and profitability goals.

Pate Memorial Hospital is a 600-bed, not-for-profit, independent general hospital located in the southern region of a major western metropolis. It is more financially stable than other hospitals in the area and even the country giving them a competitive advantage. It is debt-free and also has the highest overall occupancy rate out of the six general hospitals located in the major western metropolis.

Pate Health Clinic was formally opened on May 1, 1999. There were no promotions or advertising of Pate Health Clinic just the publicity surrounding the opening. PHC could improve its relations with the surrounding business community. It is important that PHC reaches out to the employers in the surrounding radius before their potential competitor, MedCenter, decides

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