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Marketing: a necessary art under DRGS
Hospital & Health Services Administration
|June 9, 1986
Summary
Saint Michael's Medical Center implemented a strategic marketing plan in 1982 to address declining occupancy and fiscal issues. This plan, developed with staff input, successfully increased admissions and emergency room visits, while optimizing patient length of stay.
Area of Science:
- Healthcare Management
- Marketing in Healthcare
- Hospital Administration
Background:
- Healthcare facilities often delay marketing initiatives until facing significant challenges.
- Declining community support and a shift towards tertiary care necessitated a strategic response for Saint Michael's Medical Center.
Purpose of the Study:
- To develop and implement a comprehensive marketing plan to address occupancy and fiscal challenges.
- To identify core hospital values, marketing objectives, deficiencies, desired patient mix, and focus areas for care.
Main Methods:
- A collaborative approach involving full hospital staff participation in defining the hospital's identity and marketing strategy.
- Development of a tailored action plan based on staff-identified priorities and hospital goals.
Main Results:
- Admissions increased by 12% between 1982 and 1984, with an additional 3% increase in 1985.
- Emergency room visits rose by 3%.
- Occupancy rate decreased from 92% to 82.5% after implementing a strategy to lower the length of stay.
Conclusions:
- A staff-driven marketing strategy can effectively improve key performance indicators in healthcare settings.
- The marketing plan successfully addressed initial challenges, leading to improved patient volume and operational efficiency.