Case Study Of Pate Memorial Clinic

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MEMORANDUM From: 200096 To: Steven Clinton Date: April 15, 2000 Re: Pate Memorial Hospital Recommendation: Pate Memorial Clinic should expand office hours from an opening time 7:00 am to a closing time of 7:00 in order to increase patient visits. Problem Statement: Should Dr. Roger Mahon, Pate Memorial Hospital (PMH) administrator, take action, if any, to compete with the newly established clinic, located five blocks north of PMH’s clinic? Facts: Regional Market: During the 1960’s, the hospital industry boomed with billions of dollars for hospital construction with additional funds for expansion and construction of medical schools. Government sought to reduce health care costs through cutbacks in subsidy programs and cost-control regulations. Innovations in health care delivery severely reduced the number of patients serviced by hospitals. Competitive Situation: PMH is a 600-bed, independent, not-for-profit, general hospital located in the southern periphery of a major western city. PMH is financially stronger than most metropolitan-based hospitals and it debt-free among the city’s six general hospitals. There are currently demographic shifts and the hospitals administration and board of trustees have serious concerns about its patients mix. The population growth has occurred in the suburban areas to the north, east, and west in which PMH is located south of the city. This caused PMH to become increasingly dependent on inner-city residents, who have a higher median age and higher incidence on Medicare coverage. In 1998, the board of trustees authorized a study to determine whether to open an ambulatory facility (Pate Health Clinic, PHC) in the downtown area about ten blocks north of PMH. Ambulatory health care serv... ... middle of paper ... ...burban location Competitors key marketing capabilities Direct mail advertising Response from competitors Have the same socioeconomic profile and the same usage and employment characteristics Will the competitors change in the future? The projected volume of employment and insurance physicals could change ATTACHMENT 4- SWOT ANALYSIS Strengths Weakness Opportunities Threats PMH is financially stronger than most of the metropolitan-based hospital. It is debt-free and has highest overall occupancy rate among the city’s six general hospitals Patients still dissatisfy with service hours. Lack of gynecological services. Population in the area where PHC located was expected to grow 6% per year 20% more personal illness visits next year than last year Construction in the downtown area had stimulated worker’s compensation activity

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