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Information technology and its effect on patient care
Impact of information systems and computer technology in healthcare
Impact of information systems and computer technology in healthcare
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Information has become the most valuable commodity in any market. Utilizing accurate information about customers and their interests is vital for successful marketing activities. In today's fast paced, highly competitive markets, companies must make marketing decisions quickly or risk losing their competitive edge. Using information technology (IT) allows companies to gather, analyze, and utilize large amounts of customer information. This information is used to reduce risk and uncertainty in decision making and maximize the profitability of marketing activities. IT also allows companies to evaluate the success, benefits, and profitability of IT investments, marketing strategies, and other business ventures over long periods of time. Today utilizing IT is essential in all aspects of marketing activities and successful marketing is not possible without the use of IT. Marketing in healthcare involves unique challenges which other markets do not face. According to Shaw (2008) "healthcare marketers promote a service that is complicated, expensive, and even frightening." Most people do not want to imagine themselves needing healthcare products or services and usually reject information concerning the statistical chances of their future medical needs. As a result, traditional marketing techniques like directing products and services to specific consumers or broadcasting brand images are often ineffective in healthcare markets. In order to maintain a marketing advantage, healthcare marketers started moving toward a consumer driven marketing approach focused around consumer wants, needs, and expectations. The purpose of this study is to examine the impact of IT on the marketing strategies of healthcare organizations.
The rapid expans...
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...ult, healthcare organizations have started marketing campaigns focused on patient privacy and cyber security.
References
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Kotler, P., & Clarke, R. N. (1987). Marketing for health care organizations (p. 265). Englewood Cliffs, NJ: Prentice-Hall.
Rooney, K. (2009). Consumer-Driven Healthcare Marketing: Using the Web to Get Up Close and Personal. Journal Of Healthcare Management, 54(4), 241-251.
Shaw, G. (2008). Department Focus: Marketing–Lessons from the Field. Online article on HealthLeaders Media website.
White, K. R., Thompson, J. M., & Patel, U. B. (2001). Hospital Marketing Orientation and Managed Care Processes: Are They Coordinated?. Journal Of Healthcare Management, 46(5), 327.
Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill Company.
Armstrong, Gary, and Philip Kotler. Marketing: an introduction. 11th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2013. Print.
To guarantee that its members receive appropriate, high level quality care in a cost-effective manner, each managed care organization (MCO) tailors its networks according to the characteristics of the providers, consumers, and competitors in a specific market. Other considerations for creating the network are the managed care organization's own goals for quality, accessibility, cost savings, and member satisfaction. Strategic planning for networks is a continuing process. In addition to an initial evaluation of its markets and goals, the managed care organization must periodically reevaluate its target markets and objectives. After reviewing the markets, then the organization must modify its network strategies accordingly to remain competitive in the rapidly changing healthcare industry. Coventry Health Care, Inc and its affiliated companies recognize the importance of developing and managing an adequate network of qualified providers to serve the need of customers and enrolled members (Coventry Health Care Intranet, Creasy and Spath, http://cvtynet/ ). "A central goal of managed care is containing the costs of delivering care, but the wide variety of organizations typically lumped together under the umbrella of managed care pursue this goal using combination of numerous strategies that vary from market to market and from organization to organization" (Baker , 2000, p.2).
Pride, W & Ferrell, O.C. 2000, Marketing Concepts and Strategies, Boston: Houghton Mifflin, p. 103.
Formed in 1998, the Managed Care Executive Group (MCEG) is a national organization of U.S. senior health executives who provide an open exchange of shared resources by discussing issues which are currently faced by health care organizations. In the fall of 2011, 61 organizations, which represented 90 responders, ranked the top ten strategic issues for 2012. Although the issues were ranked according to their priority, this report discusses the top three issues which I believe to be the most significant due to the need for competitive and inter-related products, quality care and cost containment.
Managed care dominates health care in the United States. It is any health care delivery system that combines the functions of health insurance and the actual delivery of care, where costs and utilization of services are controlled by methods such as gatekeeping, case management, and utilization review. Different types of managed care plans came into development by three major factors. These factors include choice of providers, different ways of arranging the delivery of services, and payment and risk sharing. Types of managed care organizations include Health Maintenance Organizations (HMOs) which consist of five common models that differ according to how the HMO is related to the participating physicians, Preferred Provider Organizations (PPOs), Exclusive Provider Organizations (EPO), and Point of Service Plans (POS). `The information management system in a managed care organization is determined by the structure of the organization' (Peden,1998, p.90). The goal of a managed care system is to provide subscribers and dependants with needed health care services at the lowest possible cost. Certain managed care plans also focus on prevention by trying to keep members healthy.
Marketing is a process of determining a consumer’s needs, devising a product or service to satisfy those needs, and trying to focus customers on the goods and services you are offering. Marketing is extremely important, and a fundamental building block for business growth. A marketing team is given the task of creating customer awareness through a variety of different marketing techniques. If a business does not pay close attention to their consumer demographic and needs, they will eventually fail over time. Two important aspects of marketing include acquiring new customers, and the preservation and growth of relationships with current customers. Marketing has always been viewed as a creative outlet, which encompassed advertising, distribution, and the selling of goods and services. Marketing staff will also try to anticipate what customers will want in the future, often being accomplished with market research. In summation, a good marketing plan should be able to create a favorable proposition or series of benefits that a customer can value through goods or services. The marketing mix is normally described as the strategic positioning of a product or service in the marketplace, using the specification of the four Ps. During the early 1960’s, Professor E. Jerome McCarthy of Harvard Business School stated that a marketing mix contains four elements. The four key points are product, pricing, promotion, and placement. It is recognized that all these aspects must be present to ensure a successful business model within a given industry. We will now take a thorough look at the four marketing mix points.
Managed care, managed care has become the dominant health care delivery source. Gaining popularity in 1990s, managed care increased from 27% in 1988 to 99% in 2009 and enrollment in Fee for Service plans decli...
Kotler, P. & Keller, K.L., (2009), A Framework for Marketing Management. 4th edition, Pearson Prentice Hall: USA
When promoting primary health care services, there are many factors that must be considered when developing an effective marketing plan. Primary care providers are the gatekeepers of health care in the United States; many patients have to visit them before being referred to specialist providers (Bodenheimer, 2003). They are also being tasked with ensuring patients are receiving preventative services and managing more complex chronic diseases (Akinci & Healey, 2004). Recruitment of primary care physicians is challenging because they are expected to do more and are not being reimbursed proportionally for the added workload (Bodenheimer, 2003). In this paper, a group of primary care physicians in Washington D.C. is looking to research their consumer population base in order to provide them better services and recruit new primary care physicians to their practice (Colorado State University-Global Campus, 2013). A successful primary care marketing plan will recruit quality health care providers while improving consumer accessibility to their services, customer satisfaction rates, and patients’ continuity of care with their health care provider.
Elaborate how the 5 P’s of healthcare marketing may impact the marketing potential of a healthcare organization.
The present environments for healthcare organizations contain many forces demanding unprecedented levels of change. These forces include changing demographics, increased customer outlook, increased competition, and strengthen governmental pressure. Meeting these challenges will require healthcare organizations to go through fundamental changes and to continuously inquire about new behavior to produce future value. Healthcare is an information-intensive process. Pressures for management in information technology are increasing as healthcare organizations feature to lower costs, improve quality, and increase access to care. Healthcare organizations have developed better and more complex. Information technology must keep up with the dual effects of organizational complication and continuous progress in medical technology. The literature review will discuss how health care organizations can provide effective care by the intellectual use of information.
Competitive advantage matters greatly to those responsible for the management of healthcare institutions. Together with rapidly escalating healthcare costs, increasingly complex medical technologies, and growing regulatory and legal pressures, healthcare organizations face a critical need to improve the quality of care at reduced costs (Cu...
Given the changing market environment, the need for more efficient and cost effective marketing strategies has induced changes to the way marketers conduct their marketing activities and led to the adoption of more integrated approaches (Dewhirst & Davis, 2005). The consequence has been the adoption of a more holistic customer oriented approach to conducting marketing communication activities, a process often known as Integrated Marketing Communications (IMC) (Dewhirst & Davis, 2005).
Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill.