Perpetual Mercy Hospital Case Analysis

1223 WordsApr 13, 20135 Pages
Perpetual Mercy Hospital Case Analysis April 2, 2013 Marketing Management and Strategy Section 002 Case Brief Receipt #: 317113731 MEMO: To: From: Date: April 2, 2013 Subject: Perpetual Mercy Hospital Case Analysis Problem/Issue: In April of 2000, the Downtown Health Clinic (DHC), which is run and overseen by Perpetual Mercy Hospital (PHC), found out some troubling news and was very concerned about it. Perpetual Mercy Hospital was concerned about the possibility of a establishing a similar clinic five blocks north of their facility. The main concerned are that the new and upcoming clinic may take away DHC’s current patients and that such a similar clinic so close could put a damper the DHC’s profitability and financial…show more content…
This option has great potential for generating patient retention and referrals due to DHC paying attention to patient’s requests increasing their loyalty and people willing to attend DHC opposed to the new clinic. Although this alternative would increase patient’s visits, profitability is not a guarantee. This option would also require an increase of 33 percent in personnel costs and cost of the other physician. The third alternative is for the DHC to add gynecology services at the clinic. When the patients were asked on how DHC could improve their services to the downtown area, about half of the female patients requested that gynecological services be added. Worth believed that gynecological services would benefit the clinic since 70 percent of current visits are made by women. As stated, women should see a gynecologist regularly at least once or twice a year which Worth estimated an additional 2,000 visits each year by providing this service. This gynecology service would require a charge of $104 per visit, including lab work, and would run patients $70 per hour to employ the gynecologist. This service would show patients that their opinions and needs are valued, which would increase customer satisfaction, willingness to return, and patients to refer other people. This would benefit the clinic in order to compete with other clinic in providing the same services and adding value for its patients. By the

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