Perpetual Mercy Hospital - Case Study

1680 Words7 Pages
PERPETUAL MERCY HOSPITAL – CASE STUDY DAVENPORT UNIVERSITY MARKETING STRATEGIES 610 PROFESSOR PHILLIPS SEPTEMBER 20, 2010 Perpetual Mercy Hospital (PMH) a 600 bed, independent, not-for-profit, general hospital is one of six general hospitals located in a major western city. Financially stronger than most metropolitan-based hospitals in the United States, it is debt-free and has the highest overall occupancy rate among the city’s of six general hospitals (Rodger and Peterson, 2010, p. 230). In May 1999, PMH formally opened a new Health Clinic in the city’s downtown area. The reasoning behind opening the new clinic was to help PMH expand its referral base through establishing a connection with the business community, and to…show more content…
Specifically, since opening DHC has found from the information gathered from surveys completed by the patient’s visiting, that their concerns lay in three areas related to service: service hours, services offered, and waiting time. In addition, patients consider whether the hospitals or clinics is convenience, has a good reputation, will accept their insurance coverage, and most importantly on the experiences of their family members and friends. (Seattle Times, Newsource) Over the eleven-months since DHC opened for business on May 1, 1999, the number of patient visiting at DHC has grown from 109 visits to over 400 visits or a 26% increase. The year-to-date operating numbers indicate that for the eleven-months period that on a per patient visit the company has incurred an average cost of $136.00 per visit with corresponding per visit revenues averaging only $68.00 (covering only approximately 50% of cost) calculated on total of 3,940 patient visits. Year-to-date operating losses totaled had $237,000 at March 2000, which means the Downtown Clinic reported an approximate $68.00 loss per patient visit over the periods reported. Then again, during this same period DHC had made 105 referrals to PMH that produced slightly over $378,000 in revenue and an estimated $30,000 in net profits. An additional benefit beyond the revenue received by PMH from DHC was that the majority of the patients referred to the hospitals were among their new target group of privately

More about Perpetual Mercy Hospital - Case Study

Open Document