Economy alone is not the answer

In the absence of quality measures, discounts and utilization controls have been the most visible and easily controlled aspect of the healthcare pricing formula. Now hospitals must begin to demonstrate that their healthcare products provide high quality at a reasonable price. This will be the strongest argument by which hospitals can differentiate themselves and avoid discounting as the sole incentive to shift blocks of patients away from their competitors. By targeting specific payors, hospitals can increase market share through the addition of large pools of prospective patients. This approach is not to be taken as an end to customer-oriented marketing strategies. Instead, it recognizes that the customer will vary from decision to decision. When a managed care program is the customer, value is what the customer wants.